Go Long Mondi Ltd
Mondi had a strong rally yesterday (18 Sep) with a positive move of 3.47% , which saw the stock close above 36000c. This was a close above the resistance line as indicated above, the share price has tested the resistance line twice in the last 6 months and failed. We anticipate a move of approximately 3420c (being the height of the channel) with a tight stop loss at 34690c should it move in the anticipated direction.
Target price 39420c
Stop loss 34690c
Go Short Tiger Brands
Tiger Brands is displaying a head and shoulders pattern formation with the right shoulder nearing completion. The entry will be a short once the price closes below 36095c on the daily chart. Following the entry, we anticipate the price action will move lower by the value from the top of the head to the neckline. However, I have made my target price slightly tighter, as I anticipate 30000c to be a strong psychological support level.
Target price 30000c
Stop loss 40000c
Remember... trade responsibly, your capital is at risk and trading can lead to capital losses.
Until next time, I wish you profitable trading.
All charts sourced: Bloomberg
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