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Friday, September 05, 2014

MYEG: A missed opportunity!

The cost of a wrong call - examples here & here - is not only the losses incurred in those trades. There is an additional cost in the form of extra wariness, which leads you to avoid making call and missing out on profitable opportunity.

One good example is MYEG. This stock broke above its horizontal line at RM3.10 on September 3. After a short correction on September 4, it continues to rally today. As at 4.45pm, MYEG was trading at RM3.46. If it can travel the same distance as its retracement of RM0.50 in April, then its potential target is RM3.60.

Based on technical consideration only, MYEG could be a trading BUY. However, the upside will be fairly limited.


Chart: MYEG's weekly chart as at Sep 4, 2014 (Source: Tradesignum)

Note:
In addition to the disclaimer in the preamble to my blog, I hereby confirm that I do not have any relevant interest in, or any interest in the acquisition or disposal of, MYEG.

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