Johannesburg - Equity buyers have resurfaced when the All Share Index recently moved above the 28 000 level.
If the index consolidates above 28 000, it could perhaps reach 28 500, but in light of the overbought situation for shares on the Dow Jones Index of the New York Stock Exchange, one might expect profit-taking rather than further rises.
This profit-taking will gain momentum when the All Share Index consolidates below 27 600.
This could easily pull the index back to 27 000. The market volatility between well-established levels is an indication that the stock market is now ideal for speculators who are not greedy.
A price level of R125 would seem to be a difficult resistance point for MTN Group's share price to break through. Should the price be able to consolidate above R125, R130 would be the next resistance level
A rising wedge formation is also forming on the daily graph, which is regarded as a dangerous technical formation.
The danger signal of the formation would be sent when the share price consolidates below R120.
Investors who are concerned should keep an eye on R125 and R120. A consolidation below R120 could put the share under pressure or even lead to it falling to R115 and even to R110.
A trend line on the daily graph has changed from a resistance level to a support level.
The share has tried to break through the 310c level seven times.
The fact that it has done so is technically regarded as positive.
The next major support level awaits at 320c but, should this be breached, 350c is not out of reach.
Speculators could consider a buying opportunity around these levels, with a stop-loss of 280c to curtail losses.