Figure 1. MEG Price Chart
MEG has closed below its Short time moving average. Short time moving average is currently below mid-time, and above long time moving averages. The relationship between price and moving averages is: bearish in short-term, and neutral in mid-long term.
The trend is still weak at ADX reading of 21.09. Usually a new trend can be seen to be developing at this level. But still this is at trading range.
Figure 2: Other technical indicators.
Momentum is bullish when its value is above zero and bearish when below zero. Momentum closes with a bearish momentum of about -0.14.
The RSI shows overbought (above 70) and oversold (below 30) areas. The current value of the RSI is 36.60. 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 33 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 36.87. This is not an overbought or oversold reading. The last signal was a buy 1 period ago.
The Moving Average Convergence/Divergence indicator (MACD) gives signals when it crosses its 5 period signal line. The last signal was a sell 5 periods ago.
Base from this indicators the latest signal generated was a BUY therefore i would be on alert to look for a possible buying opportunity. For a more safer entry i suggest to look for other valid entry signal to confirm that it is a buy such as candlesticks or the MACD signal crossover.
Figure 3. Support / Resistance Lines
Base on the chart MEG has to break the resistance at 1.44 and establish its base on that area.. Else it will find its next support line at 1.36.
Now where does MEG really headed? No one can actually tell we can just observe its behavior base on what it is showing on the charts. Fundamentally if you look at MEG it is a good company to invest your money for the long term.
Fundamental data of MEG:
Shares - 25,637.784 M
Market Cap - 36,405.650 M
Earnings of about - 0.187
Price/Earnings - 7.652
ROE - 9.955
The past week many are concern about the sudden decline of price due to the shift of funds to bonds. Another thing that add cautious and fear to the buyers is the somewhat head and shoulder formation that can be seen of MEG. But will MEG really go down now or simply on a minor correction ? No one actually knows.
Anyway, I've got this feeling that something positive is gonna happen with MEG soon. Aside from the fact that a buy signal was just triggered by the stochastic indicators in figure 2 above.
Just take a look at the following chart figures below.
Figure 4. Bollinger bands
Lower bollinger bands is finally penetrated by the price. Usually the deeper is this penetration the bigger is the probability of the price to snap back to its average price which is at 1.52 right now.
Figure 5. MACD divergence
I may be wrong here but I think as early as now there is some kind of divergence which is starting to be seen on MEG. I just simply hope that the next coming days this will still hold true..
Figure 6: Accumulation/Distribution divergence
Another divergence can be seen on this chart. AccDist is increasing while the price is still going down. Usually the price will follow this AccDist line. I may also be wrong here but I'm atleast expecting price to go up in the short term view.
Lets wait and see what will happen these coming week.
No comments:
Post a Comment