MTN at an important inflection point.

The MTN share price is at a very interesting inflection point. The Level of R85 is where we find both the trendline support which formed from the September 18’ lows as well as the declining channel which has formed since June. The moving averages are configured with a slight bearish bias so I would not look for extended targets here, but given that the 200 day moving average is still pointing higher gives me some comfort that the bearish trend is not too extreme and the probability of a bounce is likely. Look to buy between R85 to R87, using a stop loss as a close below R84.00. On the upside I would look for a target of R92 which is the same level the stock recently found support (should now turn into resistance). For extended targets it is possible that the stock might retest the upper end of the declining channel which is at R96 and declining daily. I am also seeing some divergence on the RSI which matched its previous low, even though price made a new low. This could potentially be warning of a rally to come.

Enter - R85 to R87
Stop loss close below : R84
Target : R92 and R96