Trading Mondi Plc: Potential Price Path, Current Regime + Probabilities

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

Trade Local & Global Financial Markets with Unum Capital.

To get started, email tradingdesk@unum.co.za

The blue shaded area and the yellow candles represents a POTENTIAL PRICE PATH. This is not a certainty but rather a PRICE ACTION PROBABILITY.

The yellow circled area represents the recent buy re-entry range from which we saw a rebound from R270 to R301. This setup was highlighted in the report dated 28 April. The downward sloping 200-day SMA has since acted as a resistance range and has resulted in the share consolidating since 14 May. An unfilled gap remains at R279 which could be re-tested before the next move higher. Here, we are considering the potential for a breach of the downward trend line (overhead resistance).

Note: The setup and approach is subject to change as the price action and news flow develops. Stay flexible!

Current Price Action Model - The long term (5 - 8 week) reading stands out to me!

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Previous Post (Tuesday, 13 May): Mondi Plc | Three-Day Rebound From Buy Zone

Traded into the buy range (a low of R268 followed by a rebound to R290 as of yesterday's high). The current price action model reading is as follows:

The slide below was featured in the report, 'The Sum of the Charts' (Monday, 28 April), highlighting the Mondi and preparing clients for a potential trading opportunity.

Lester Davids

Senior Investment Analyst: Unum Capital