Chart Update: MEG (November 22, 2009)

Figure 1. MEG Price Chart

MEG has closed below its short time moving average. Short time moving average is currently below our mid-time moving average. The relationship between price and moving averages is: bearish in short-term.

MEG is currently on a trading range with trend strength of about 16.14.

MEG volatility:

- It closed down -0.0200 at 1.5200 on volume 25.30% below average.

- MEG has closed above bottom band by 27.1%. Bollinger Bands are 29.7% narrower than normal. The current width of the bands (alone) does not suggest anything conclusive about the future volatility or movement of prices.

MEG support / resistance lines:
Resistance: 1.62 then 1.74
Support: A hidden support line near 1.50 then 1.43

Figure 2. Technical Indicators

Momentum is bullish when its value is above zero and bearish when below zero. RSI closes with bullish momentum at 0.04.

The RSI shows overbought (above 70) and oversold (below 30) areas.  The current value of the RSI is 43.64. This is not a topping or bottoming area. A buy or sell signal is generated when the RSI moves out of an overbought/oversold area.  The last signal was a sell 28 periods ago.

One method of interpreting the Stochastic Oscillator is looking for overbought areas (above 80) and oversold areas (below 20).  The Stochastic Oscillator is 19.84.  This is an oversold reading.  However, a signal is not generated until the Oscillator crosses above 20  The last signal was a sell  4 periods ago.

The Moving Average Convergence/Divergence indicator (MACD) gives signals when it crosses its 5 period signal line on my modified MACD. Presently MACD is bearish and no sell signal is generated yet.

In my opinion, I rated MEG as HOLD for it is at oversold reading and my modified MACD is yet to confirm a sell signal.