As we mentioned in our recent post, Russia's latest round of upheaval-spawned volatility created plenty of value opportunities in a list of the country's biggest companies. Traders can take a look at Mobile Tele Systems ( MBT , quote ), a leader in Russia's telecommunications industry with global ambitions.
The fuel gauge - the blue dotted line below the chart nearby - is continuing lower, suggesting weak buying.
The 150-day moving average (green dotted line) and T3 Tilson (blue dotted line) are at an impasse after MBT broke and then fell back below resistance.
Unlike VIP, the T3 Tilson line here is preparing to turn lower, possibly forecasting direction.
With the close from yesterday sitting on the 50% Fibonacci support level with a indecision candle (Doji), traders could see stock price attempt to test the 61.8% Fibonacci support level along with the past resistance level -- now functioning as support.
MBT and VIP have been trading in lock step with each other, giving trades who closely watch both charts a possible edge. If either chart's outlook starts to turn, traders may be able to take advantage of the other's possible impending move.
MBT's chart is painting bearish sentiment at the current moment, suggesting traders may have the ability to enter at a better position in the near future.
A few possible scenarios:
* MBT could break through the .% Fibonacci support level and head straight to the upper trendline to test a lower support level.
* Consolidation over next few days may allow the upper trendline to come in play and provide a third convergence at the 61.8% Fibonacci level.
* Price could hold at the 50% or the 61.8% Fibonacci support level and form a higher low -- which we will need more trading sessions to confirm -- before ultimately heading toward the 18% Fibonacci extension at $18.22 to complete the Fibonacci swing.
* The 150-day moving average could cross below the T3 Tilson, presenting a negative price move.
Summary: Traders may want to consider waiting to see what transpires both on the technical front and the political unrest currently inflicting Russia. Look for entry points around the 61.8% Fibonacci support level with a protective stop order below the trendline.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.