Meg Energy Corp. - (MEG.TO) - May 18, 2021
Bouncing back from a six-week dip into the yellow zone, MEG Energy (MEG.TO) returned to the Green Favored Zone of the SIA S&P/TSX Composite Index Report earlier this month and has continued to climb. Yesterday the shares finished in 30th place up 16 spots in the day and up 74 spots in the last month. Since we last mentioned MEG.TO in the February 23rd issue of the Daily Stock Report, the shares are up 14.6%.
Earlier this year, MEG Energy (MEG.TO) snapped out of a long-term downtrend with a breakout over $6.00, which has since established as support through multiple tests. A trading range has emerged between there and $8.00 initial resistance over the last three months. Within that range, the shares have been climbing, suggesting that accumulation has resumed, but a breakout over $8.00 remains needed to confirm that and signal the start of a new upleg within a larger upward trend.
On a breakout, next potential resistance appears near $10.00 based on a measured move and a round number test, followed by resistance dating back to 2018 in the $11.00 to $11.50 area. Initial support appears at the 50-day moving average near $6.85.
Since a correction bottomed out in April, MEG Energy (MEG.TO) shares have come under renewed accumulation, establishing a new upward trend of higher lows and positive Double Top breakouts. Currently the shares are approaching their March high near $7.95 where a breakout would confirm that the underlying uptrend has resumed and that a new upleg is starting.
Should that occur, next upside resistance may appear in the $9.50 to $9.65 range, then near $10.65 all based on vertical and horizontal counts, or perhaps near the $10.00 round number. Initial support appears near $7.75 based on a 3-box reversal.
With a perfect SMAX score of 10, MEG.TO is exhibiting near-term strength across the asset classes.
Disclaimer: SIACharts Inc. specifically represents that it does not give investment advice or advocate the purchase or sale of any security or investment whatsoever. This information has been prepared without regard to any particular investors investment objectives, financial situation, and needs. None of the information contained in this document constitutes an offer to sell or the solicitation of an offer to buy any security or other investment or an offer to provide investment services of any kind. As such, advisors and their clients should not act on any recommendation (express or implied) or information in this report without obtaining specific advice in relation to their accounts and should not rely on information herein as the primary basis for their investment decisions. Information contained herein is based on data obtained from recognized statistical services, issuer reports or communications, or other sources, believed to be reliable. SIACharts Inc. nor its third party content providers make any representations or warranties or take any responsibility as to the accuracy or completeness of any recommendation or information contained herein and shall not be liable for any errors, inaccuracies or delays in content, or for any actions taken in reliance thereon. Any statements nonfactual in nature constitute only current opinions, which are subject to change without notice.