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Double Trade - Mondi & Tiger Brands

Odwa Magwentshu



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.

Trade summary:

Target price                       39420c

Entry                                 36000c

Stop loss                           34690c



Go Short Tiger Brands

tiger brands.png

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.

Trade summary:

Target price                       30000c

Entry                                  36095c

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

Odwa Magwentshu | Trading Specialist at GT247.com

Disclaimer: Any opinions, news, research, analyses, prices, or other information contained within this research is provided as general market commentary, and does not constitute investment advice. GT247.com will not accept liability for any loss or damage, including without limitation to, any loss of profit, which may arise directly or indirectly from use of or reliance on such information. The content contained within is subject to change at any time without notice, and is provided for the sole purpose of assisting traders to make independent investment decisions.

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