MEG Energy Corp - (MEG.TO) - August 26, 2022 (Daily Stock Report)

by SIACharts.com

 

 

Oil & Gas producer MEG Energy (MEG.TO) has joined several of its peers in soaring back up the rankings in the SIA S&P/TSX Composite Index Report. Yesterday, MEG.TO completed a round trip between the Green Favored Zone and the red zone, re-entering the top 25% of the report for the first time since June. MEG.TO finished yesterday in 51st place, up 44 spots on the day and up 88 positions in the last month.

A major breakout is underway in MEG Energy (MEG.TO) shares. A downward trend that started in June shifted into a sideways trend over July and the early part of this month after the selloff was contained by previous support near $14.50. Since successfully retesting that level, the shares have been under renewed accumulation and the technical picture has turned increasingly bullish. In particular, this week, the shares regained their 50-day average and then broke out of a base on rising volumes, a sign of increasing investor interest.

Potential upside resistance tests on trend appear near the $20.00 round number, then $22.50 where a previous peak and a measured move from the $14.50 to $18.50 base converge. Initial support moves up toward the $18.50 breakout point from the 50-day average near $17.25.

 

It had been a tough summer for MEG Energy (MEG.TO) until earlier this month, but in the last few days, a major turnaround has started. A drive down below $15.00 failed to hold with the shares returning to their previous $15.50 to $17.90 range and a low pole warning calling off a previous triple bottom. Now, the shares have broken out over $17.90, completing a bullish Triple Top pattern and signaling the start of a new recovery trend.

Initial upside resistance appears in the $20.00 to $20.15 area, where a round number, horizontal count, and previous resistance cluster, followed by $22.20 based on a previous column high. Initial support appears near $17.15 based on a 3-box reversal.

With a bearish SMAX score of 5, MEG.TO continues to exhibit weakness against the asset classes for the moment.

 

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.

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