Lester_Davids
Short

MTN Group - Betting On More Downside

JSE:MTN   MTN GROUP LTD
Dear Trader

This afternoon MTN Group is showing signs of a potential pullback in price following the bounce from just below the R70 level over the last ten trading days. As per the intraday chart, the price is looking to roll over, while the daily chart below sees the price at the prior breakdown level and testing the rising incline support. Fundamentally, there is still uncertainty around the claim via the Nigerian Central Bank and the risk of further sanctions against Iran still loom - an area in which MTN operates.

Based on this, the I see an opportunity for traders to short/sell the share on a break below the incline at approximately R85.40. Alternatively, aggressive traders could enter at current levels.

Trade Levels:

Short/Sell MTN at current levels R85.55
Stop-loss: R88.90
Take Profit Target: R80.00
@Lester_Davids I agree, although the stop is fairly tight. Pay-off is over 3:1 so you could make the stop a bit wider.

Currently MTN margin is 20% (i.e. 5x geared) so the payoff is around 45% on margin.
Reply
Lester_Davids UnumCapital
@UnumCapital, Hi Mark, I've adjusted the stop.
Reply
UnumCapital Lester_Davids
@Lester_Davids, peer group pressure!!!!!
Reply
Lester_Davids UnumCapital
@UnumCapital, If possible, can you please send me the calculation for this. Just out of interest, how do you get to 45%?
Reply
Home Stock Screener Forex Screener Crypto Screener Economic Calendar Shows How It Works Chart Features Pricing House Rules Moderators Website & Broker Solutions Widgets Charting Solutions Lightweight Charting Library Help Center Refer a friend Feature Request Blog & News FAQ Wiki Twitter
Profile Profile Settings Account and Billing Refer a friend My Support Tickets Help Center Ideas Published Followers Following Private Messages Chat Sign Out