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  • Lester Davids

Combining Our Value-Added Tools To Find Opportunity. MTN As An Example | Thursday, 03 August 2023

Updated: Aug 3, 2023

Some of the tools that are available to clients are (1) the tactical trading guide and (2) the standard deviation chartbook.

The tactical trading guide is available as an automated tool, on the telegram group while the standard deviation chartook is published at the beginning of each week (Monday) as well as intra-week.

During yesterday's trading session, MTN declined substantially, with the share down by as much as 8% at one point on an intraday basis.

My comment on 05 July for the share included the following sentence: "There's always a reason to not buy MTN as it's a share that produces negative surprises."

Tuesday's end-of-day reading for the share gave us a fore-warning of the potential price action with the short term reading as follows: "In or commencing an upward trend, however strongly consider the potential failure to hold the prior session or range highs which will created a tactical sell/short opportunity"

For an enlarged view, click on the arrows in the top right corner of the image below.

Intraday, the share trade toward the lower boundary of the 2 standard deviation 50-day linear regression channel, which was highlighted in the Standard Deviation Chartbook on Wednesday morning (see image below). This chartbook is published daily and helps traders assess the reward-to-risk for the shares that are covered.

While MTN is a highly volatile share, traders with a high risk tolerance may want to keep the following level (range) in mind:

Approximately 12200c to 12500c, which is an overshoot of the 2 standard deviation 50-day linear regression channel, the 61.8% retracement as well as the prior swing lows (see white horizontal line). This is the range I am monitoring for a potential ultra short term rebound.

Often, time constraints does not allow every potential idea or share to be discussed and highlighted, hence automated tools are available to be utilized by the client to provide insight into potential opportunity.

For more info on this or to get trading, get in touch today.

Lester Davids

Analyst: Unum Capital

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