Trading Ideas

Y’ello…look who’s back

Y’ello…look who’s back by SchalkLouw on

MTN definitely back on the radar. After a few years of constant bad news, good news lately pushed the share price above its diagonal resistance line, which started in January 2018. Over the shorter term, the 14 day RSI are indicating that $JSEMTN are extremely overbought. Should the share price take a bit of a breather, a close below R92 would put the company back in the same downward trend. A breakthrough these levels could see MTN try and find support at its 200-day (R90.27) and 50-day (R88.95) averages.

It seems while NYSE:JMIA ( MTN holds 29.7% of the company) is running 10% plus per day on average, support should remain favorable for MTN as well. The share price is also getting mighty close to a Golden Cross.

On the upside, next target on the company is R110, which places MTN on a forward PE (31 Dec 2020) of 14.5 times and a forward dividend yield of 5.52% (all according to Thomson Reuters ).

Schalk Louw
As Portfolio Manager at PSG Wealth Old Oak and with over 20 years’ experience in the investment industry, Schalk has consistently delivered solid returns to his clients and has certainly become one of South Africa’s most well-known strategists. He started his career in 1994 at the stockbroking company, Huysamer Stals (later ABN Amro). He joined SMK Securities in 1997, (later became BoE Personal Stockbrokers) and was later appointed as director and branch manager. In 2001 he co-founded Contego Asset Management and managed the company as CEO up to March 2014, after which he joined PSG Wealth Old Oak. Schalk has also become a regular household name with investors, with his reports being published in many of the national press. He completed his MBA in 2008.

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