BOTTOM LINE: MTN has been range bound between 15,650cps and 10,475cps
(Click image to enlarge)
After maintaining support at 10,475cps, MTN breached the resistance trend-line of its medium-term bear trend - substantiated by the 3-week RSI overcoming its major resistance trend-line (dated back to August 2014).
MTN confirmed a positive breakout above 12,740cps, but because the RSI was overbought, MTN is currently retracing. Support retained at 11,975cps should trigger a reversal through our buying level at 12,740cps again. This move would be a recovery within the huge sideways band, and therefore, the upside target would be at 15,650cps.
A downside through 11,975cps could see MTN retest the 10,475cps key support mark. Failure to hold there would extend medium-term downside through 9,500cps.
Technical Analyst, Sharenet
Moxima has a B.Comm Finance from the University of South Africa and is a certified Chartered Market Technician Level 2, currently completing Level 3. She has been a technical analyst for 10 years, working for BJM, Noah Financial Innovation and for Standard Bank as part of the Research Team in the Treasury Division of CIB. She now runs her own business, The Money Hub, and consults for Sharenet. Moxima has been rated as one of the top 5 technical analysts in South Africa and outperformed the market during the recent recession. She regularly makes an appearance as a guest on CNBC Africa and writes often for Finweek and Sharenet’s Views.