Figure 1. MEG Price Chart
The RSI shows overbought (above 70) and oversold (below 30) areas. The current value of the RSI is 44.66. 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 37 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 72.62. This is not an overbought or oversold reading. The last signal was a buy 5 periods ago.
The Moving Average Convergence/Divergence indicator (MACD) gives signals when it crosses its 9 period signal line. The last signal was a sell 9 periods ago.
The CCI shows overbought (above 100) and oversold (below -100) areas. The current value of the CCI is -32.81. This is not a topping or bottoming area. The last signal was a buy 3 period ago.
Figure 2. Fibonacci Support and Resistance Lines.
Presently MEG is just about the 1.44 support line. Its next resistance line is at 1.62 and then at 1.72.
Recommendation: BUY
Based from our technical indicators above the latest signals generated, are from the Stochastic and CCI indicators, which both indicates a BUY signal already. Then when looking at the present MACD, it is about to cross its signal line which will confirmed our buy signal.
Another thing to note here is that the MACD, already confirmed the divergence between the MACD histogram rising and the current price direction of MEG at downtrend. The RSI indicator also indicates a double bottom pattern. Both the MACD and RSI clearly indicates the MEG's price is soon going to go up again.
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