Sunday, February 26, 2012

MBT: Who will win, resistance or support?

MBT is one of the best performing stocks in the financial and banking sector. In fact, it is one of the big reasons why the financial sector has been doing exemplary well this year. Below is MBT's long term chart.


MBT is currently at its long term resistance which theoretically suggests that MBT will go back down. Below is MBT's short term chart which suggests a different thing.


MBT is currently on its short term uptrend support which, again theoretically, suggests that MBT should bounce and continue to go back up. Because of the strong momentum that it has gained and considering the strength of the financial sector and even the whole index, MBT has a greater chance of bouncing back up.

However, it's MACD and RSI are suggesting some weakness which may make the long term trend resistance more significant than its short term trend.

Citiseconline has set a face value of 108 for MBT which is 30% away from its current price at 83.15.

Stocks has been breaking all time highs this year and MBT might just do the same. Three possibilities: [1] MBT will simply break it's long term resistance, [2] MBT will consolidate before breaking out, or [3] MBT may sink lower giving more buying opportunities.

No comments:

Post a Comment