Megaworld Corporation (PSE:MEG) might have hit its support near the 3.68 area, which is 10 fluctuations higher than the support that I’ve plotted near 3.58. You can’t be very complacent at this stage yet, however. If you will observe the behavior of MEG over the past three months, you’ll notice on the chart that it made a series of dead cat bounces (DCBs). Watch or listen to this video to learn more about a DCB.
MEG is both bearish on a short-term and long-term perspective as far as the alignment of the Simple Moving Averages (10-, 20-, and 200-day SMAs) on my chart is concerned. The longer-term SMAs hover the shorter-term SMAs. MEG’s current price is below all three SMAs.
MEG must break out above the resistance near 4.11 for this stock to have a higher chance of crossing above the 20-day SMA. MACD must have already crossed above the signal line by the time the 10-day SMA crossed above the 20-day SMA, which is a confirmation of a bullish sentiment on a short-term period.
The 3.00-3.10 range is the main or major support level of MEG. However, the support near 3.58 must be broken with a strong selling momentum for the chance of drawing closer to 3.00-apiece will become highly possible.
Nonetheless, participants for November month to date have registered a tied-up buy and sell averages at 3.89-apiece. Nearly 20 percent of this month’s participants have registered a 100 percent buying confidence on MEG.
Apparently, foreign fundies are not yet done disposing their shares.
Top 10 Players’ Sentiment
Participants with a 100% Buying and Selling Activity from Oct-03-2016 to Oct-27-2016 at 03:30PM:
- 23 out of 117 participants or 19.66% of all participants registered a 100% BUYING activity
- 3 out of 117 participants or 2.56% of all participants registered a 100% SELLING activity
- Top 10 Players’ Buying Average: 3.8994
- Top 10 Players’ Selling Average: 3.8960
Online Foreign Brokers’ Transactions
From October 3, 2016 to October 27, 2016, 11 out of 11 active online foreign brokers traded MEG.
- Online foreign brokers’ Buy Average: PHP3.90
- Online foreign brokers’ Sell Average: PHP3.88
- Number of net buyers among the participating online foreign brokers: 4 out of 11
- DEUTSCHE bought the biggest number of shares among online foreign brokers amounting to PHP249,252,160.00.
- UBS sold the biggest number of shares among online foreign brokers amounting to PHP245,928,090.00.
Foreign Fund Flow
On a 30-day trading period, MEG is on a Net Foreign Selling worth PHP419,639,389.00.
MEG has a moderate risk level based on my proprietary risk level indicator.
See the downtrend pattern on MEG’s volume for the past 6 trading days.
For position traders, you have the option to anticipate the crossing of the MACD above the signal line and the touching of the price above the 10-day SMA. Read this article to learn how I use the 10-day SMA and MACD to identify potential entry signals.
Notice that while the price is slowly inching up, the volume is in a downtrend pattern. When the price is moving up but volume is going down, it is believed that the ascent in price may not be sustainable. However, that isn’t true all the time. Real-time monitoring on MEG’s price movement is advised if you plan to day-trade, swing-trade, or whatever-kind-of-play-you-like with this stock.
If you’re eyeing MEG for your long-term portfolio, it is not a bad idea to consider fundamental criteria in your decisions. MEG’s net income after tax for 9M2016 is 12 percent higher than the same period last year. Its 3Q2016 net income after tax is almost 11 percent higher than the same period last year. Then, you can use technical analysis to identify your entry and exit levels.
Use the data I’ve presented above so you can make an informed decision.
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