Well, I have been trading $MEG before, though from my experience it is quite well correlated with the Philippine Composite Index, thus sometimes I tend to look at PSEi first, to see its support and resistance, before I look at highly correlated stocks like MEG.
 |
| Figure 1: MEG Yearly Chart |
If we look at the yearly chart of MEG, it is a buy on dips, with immediate line in sand at Php4.25, or the year should close above Php4.25 in order to have a shot at trading high next year.
 |
| Figure 2: Spyfrat Chart |
Looking at RSI (30), there's a current resistance shown in Figure 2, with a resistance also of 50SMA, so if you think it will stop for a while on those resistances, calculate risk reward before opting to trade the stock.
 |
| Figure 3: Support and Resistances |
Looking at the parameters, if you want to trade the stock come Monday, line in sand at Php4.49 with the expectation that it would break above Php5.5, as I see that the stock is bullish at this point with a series of structure highs. This would I think give you a better risk reward.
| Stock
name |
MEG |
| Current Price |
4.79 |
| YTD Return |
12.71% |
| 52Wk High |
5.51 |
| 52Wk Low |
3 |
| MVWAP (10
days) |
4.62 |
| MVWAP (20
days) |
4.7 |
| MVWAP (65
days) |
4.87 |
| MVWAP (252
days) |
4.28 |
| YTD Flow |
-717,022,336.00 |
| 20D Ave Volume |
45,948,048 |
| 50D Ave Volume |
43,508,164 |
| 90D Ave Volume |
45,909,256 |
CAVEAT!
Disclaimer:
Trading is a risky thing and the post in this site are for educational purposes only. Equities and
Forex Trading is speculative in nature and may harm every trader and
investor by losing money. Thus, do not treat this post as a
recommendation to BUY or SELL a stock or a currency pair. Blog contents
are valid only on the date of publication and will be subject to change
without notice. Thus, the reader is advised to take precaution, and is
recommended to do their own studies before pressing the BUY and SELL
buttons. I will not take any responsibility with the readers trading
results.
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