MGNT trade ideas
Magnit, The Shoprite of RussiaFollowing a stellar multi-year run which commenced in November 2008 and where the share price appreciated from RUB360 to a high of RUB12944, Magnit's share price was seen under massive pressure, trading near six-year lows. Technically, the current level of 3957 (or below 4200) presents an attractive risk/reward on a medium-term basis. Since September we saw 3800 as a resistance level however strong buying can be seen with the RSI pointing sharply higher. From a fundamental perspective, muted growth is being discounted with the share trading at a price/earnings ratio of 10x.
Trade Levels:
Buy at 3960
Stop-loss: 3300
Take Profit Target: 5500
