Technical Summary: The Mantra stock has recently emerged from a long term downtrend and appears to be forming a sideways base where sellers have been meeting buyers in equilibrium. Although a high risk strategy experienced investors with solid knowledge of the companies fundamentals and a long term horizon may consider buying short term corrections on the MTR share price. When buying a dip we believe it is important for investors to wait until the stock shows renewed strength before buying. Otherwise it increases the probabilities that you get caught in a wider down movement for the stock. In the case of Mantra this persisted from October 2016 through to March 2017. We suspect that this
stock has remained supressed with the wider Australian market and economy. Investors that are confident in the long term prospects for the company may consider “averaging” into a position as a viable strategy. The question for investors is if this stock will breakout from equilibrium on the upside or downside?