MONDI turning upJSE:MNP has formed a bullish harami at a support level and could be looking good for a long position if confirmed.
MNDI trade ideas
JSE:MNP Mondi Distribution CompleteMondi has been undergoing distribution with an upsloping trading range (TR). After a backup to the TR we now see high volume and increased volatility to the downside indicating increased selling. This is also pushing against an important level of 29000. If this breaks we can see a significant markdown.
Mondi PLC Daily breaks up.MNP has broken up from an ascending triangle pattern on the daily chart
Risk reward : 1.5
MNP ShortMondi is in a downtrend,the share has rallied to resistance and momentum is coming out of the price action.
$JSEMNP Weekly chart looks awful - we wait for confirmation $JSEMNP Weekly chart looks awful - we wait for confirmation
Much More Mondi!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.
Mondi - Bulls still strugglingWe may derive the following from the Daily MNP chart:
1. Price is yet to break through its daily downtrend channel.
2. We are approaching a potential buy zone / support level.
3. Price i.m.o should hold at the buy level.
4. NB: The trend is still down - so be cautious in buying.
5. As always - maintain your risk.
Note: The views provided herein do not constitute financial advice.
MNP Head & Shoulder pattern formingA Head and Shoulders chart pattern is forming on JSE:MNP and if it confirms by breaking through the neckline, we could see a nice move downwards.
MNP now out the top of channelJSE:MND was trading in a downward channel for quite some time and we were expecting a continuation down the channel.
It has recently turned and has broken out the top of the channel.
We are now looking at an upward move similar to what is happening on JSE:MND
$JSE-MNPJSE:MNP
Made fake beak out few days ago and now back to sideways consolidation.
There is small double bottom with neck line around 31800.
If double bottom plays out target will be around 33800.
$JSE-MNPJSE:MNP
Is in down trend and currently breaking head and shoulders pattern intra day.
Target around 28800/29000
Strong Downward Momentum on MNPJSE:MNP is trading in a downward channel and a pattern has emerged that every time it hits the top of the channel, it plummets towards the bottom of the channel. It has recently hit the top of the channel and is looking positive for a downward move, but just to be safe, we will wait until it breaks through the fractal a little below the current price.
FWCFalling wedge continuation, can we see this company stocks gaining some weight because of this!???
Mondi Still Has More Downside To ComeMondi is a global leader in packaging and paper, delighting its customers and consumers with innovative and sustainable packaging and paper solutions. Mondi is fully integrated across the packaging and paper value chain - from managing forests and producing pulp, paper and plastic films, to developing and manufacturing effective industrial and consumer packaging solutions. Sustainability is embedded in everything Mondi does. In 2017, Mondi had revenues of EUR7.10 billion and underlying EBITDA of EUR1.44 billion. Mondi has a dual listed company structure, with a primary listing on the JSE Ltd. for Mondi Ltd. under the ticker MND, and a premium listing on the London Stock Exchange for Mondi plc, under the ticker MNDI. Mondi is a FTSE 100 constituent, and has been included in the FTSE4Good Index Series since 2008 and the FTSE/JSE Responsible Investment Index Series since 2007.
Technicals
The structure indicated on the chart above has broken to the downside. I expect further downside with possible reversal points at the 38.2%, 50% and 61.8% Fib retracement levels.
I will be looking at lower time frames for a confirmation structure in order to enter the short.
Happy trading!
Linton
MNDI 5 RRR shortTrading Methodology:
1. An asymmetric bullish/bearish pennant is drawn using ascending and descending curved trend lines with a minimum of three price action touche points per line. The direction is determined by the previous trend.
2. The angle tool is applied from the earliest two trend touch points, beginning at the earliest touch point.
3. A trend-based Fibonacci retracement triangle is drawn starting from the earliest trend touch point and ending at the earliest touch point of the opposite trend line .
4. Based on the degree, of the earlier defined angle, the appropriate (and secret) levels are selected for the fibonacci retracement ; two levels for stop-loss and two levels for take-profit. The closest stop-loss level to the current price level is the top priority stop-loss. Though the secondary stop-loss level is often chosen for some markets such as FX and some equities in order to account for seldom unexpected resistance breaks. The greater target level is the top priority, and where majority of the shares are sold, though some may choose to close part of the position at the first target level or set it to be the stop-loss once price exceeds it. Entries should be laddered in around the levels closest of the yellow line.
This trading strategy can be applied to any market and time frame, and positions most often garner the greatest risk-to-reward ratio with the highest success rate. What more can you ask for? I will only be posting my unique trading strategy until EOY. I work solely with price action to identify pennants and apply unique trend-based fibonacci retracement levels for SL and TP levels. Reach out to me if you have any questions.
