For MTN Group, Here's A Breakdown of The Current Price Action

Research Notes For 26 to 30 May > https://www.unum.capital/post/r2630may

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• The 7-day trend is indicated as "Strong," while the 14-day trend is "Bullish."

Comparison:

• Both the shorter-term (7-day) and the slightly longer-term (14-day) trends are indicating upward momentum, with the 7-day trend being "Strong" and the 14-day trend being "Bullish." This suggests a generally positive price action for MTN across these two timeframes.

Potential Trading Approach for MTN:

• Short Term (Next 1 to 10 Trading Days): The model notes, "In or Commencing Upward Trend However Strongly Consider The Potential Failure To Hold Prior Session Range Highs Which Will Create A Tactical Short-Sell Opportunity."

  • Approach: Acknowledge the short-term upward trend. However, be cautious about potential reversals if the price fails to sustain above previous session highs, which could present short-selling opportunities.

• Medium Term (Next 2 to 4 Weeks): The model indicates, "In or Commencing Upward Trend However Strongly Consider The Potential Failure To Hold Prior Session Range Highs Which Will Create A Tactical Short-Sell Opportunity."

  • Approach: Similar to the short term, the medium-term outlook is bullish but with a warning. Traders should be aware of potential short-term pullbacks if prior range highs are not maintained, which could offer tactical short entries.

• Long Term (Next 5 to 8 Weeks): The model states, "In or Commencing Upward Trend However Strongly Consider The Potential Failure To Hold Prior Session Range Highs Which Will Create A Tactical Short-Sell Opportunity."

  • Approach: Even in the longer term, the model suggests an upward trend but maintains the caution regarding the failure to hold prior session highs. This implies that while the overall direction might be up, short-term weakness could still occur.

Overall Trading Considerations for MTN:

• Consistent Upward Momentum: Both short-term and medium-term trends point to upward momentum, which is a positive sign.

• Vulnerability at Range Highs: The recurring caution about the potential failure to hold prior session range highs suggests that traders should be attentive to price action around these levels for possible short-term reversals.

• Tactical Short Opportunities: Despite the bullish trends, the model explicitly mentions the possibility of tactical short-sell opportunities if these range highs fail to hold.

In summary, for MTN, the current view suggests a bullish sentiment across the short to medium term, but traders should be vigilant for potential short-term pullbacks at prior session range highs, which could offer tactical short entries. The long term also leans bullish with the same caveat.

MTN: Recent Ideas

Lester Davids

Senior Investment Analyst: Unum Capital