Chart 1: MEGB's 60-minute chart as at Jan 5, 2011_4.45pm (Source: Quickcharts)
Chart 2: MEGB's daily chart as at Jan 4, 2011 (Source: Tradesignum)
Wednesday, January 05, 2011
MEGB broke above the resistance of RM2.24
In the euphoric market today, one stock which has done very well is MEGB. It gained 15 sen to close at RM2.28. A close look at the 60-min chart & the daily chart below will show that the stock may have completed its bottoming phase when it managed to break above the trading range of RM2.03 & RM2.24. It should be noted that this positive breakout was accompanied by sharply higher volume. If the stock does not fall below the RM2.24 level over the next few days, we may see the beginning of a recovery for MEGB. It could be a trading BUY.
Chart 1: MEGB's 60-minute chart as at Jan 5, 2011_4.45pm (Source: Quickcharts)
Chart 2: MEGB's daily chart as at Jan 4, 2011 (Source: Tradesignum)
Chart 1: MEGB's 60-minute chart as at Jan 5, 2011_4.45pm (Source: Quickcharts)
Chart 2: MEGB's daily chart as at Jan 4, 2011 (Source: Tradesignum)
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5 comments:
Hi Alex
What are your views on Favco now Muhibbah on the uptrend TQ
May God Be with You Always
That's a very very good call, Alex. Potential upside is huge. What's the next level of resistance?
HI duran
Favco has broken above its strong horizontal resistance at RM1.15 & tested the next resistance at RM1.25. The indicators are positive. The stock looks like it may continue to rise.
Hi Alex
poh here
I just want to confirm that is it the next resistant line at RM1.25. (now 1.83)
still need to wait???
Hi poh
I think when you state the next resistant line at RM1.25, you actual meant the support line. How did you arrive at this support?
what I saw is that MEGB broke its horizontal support at RM3.60 in Sept 2010, it dropped to RM2.80. When it broke the RM2.80 support in Nov 2010, it dropped to RM2.00. Last week, it broke the RM2.00 support. Is it going to drop another 80 sen before a support kick in? If so, it may hit RM1.20. What can I say... Is stock so predictable? I doubt it.
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