Mondi PLC’s short-term momentum returned after the recent positive trading update and now finds the share price at the top of a major symmetrical triangle. A symmetrical triangle chart pattern represents a period of consolidation before the price is forced to breakout or breakdown. A Breakout from the upper trendline indicates the start of a new bullish trend, with the first price target being the 200-day Moving Average (at R321.57). A Break and close above the 200-day Moving Average could see the share price testing the R327.50 level, with the next target then becoming R342.
Should the top of the triangle act as resistance (and not break), a possible pullback could see the price find support at the 50-day Moving Average (at R313.80), with significant support at the bottom of the triangle, at R303.
Mondi has underperformed the FTSE/JSE All Share since October 2018, with some short-term relative positive performance that returned to the share price since the release of the trading statement.
Current consensus target price (Source: Thomson Reuters) for MNP is R369.33.
Should the top of the triangle act as resistance (and not break), a possible pullback could see the price find support at the 50-day Moving Average (at R313.80), with significant support at the bottom of the triangle, at R303.
Mondi has underperformed the FTSE/JSE All Share since October 2018, with some short-term relative positive performance that returned to the share price since the release of the trading statement.
Current consensus target price (Source: Thomson Reuters) for MNP is R369.33.