MEG at resistance. Are the bulls still strong?
MEG’s rally of 4.5% last Friday brought the price to 3.74 per share and hit the resistance at 78.6% Fibonacci Retracement level. If you notice we have a resistance at this price range last November 15 & 18 where the bulls gave up and MEG fell eventually to 3.12 per share.
The elements on Ichimoku system is currently telling us that MEG is moving in an upward trend but weekly chart shows some concern for the bulls. If you check the weekly chart, it is currently at resistance slope. If at the end of this week a bearish reversal pattern will appear then MEG may retrace just like last time when we saw an Engulfing pattern.
In case it will retrace, we might see MEG to hit 3.38 based on Kijun Sen line’s movement. RSI or Relative Strength Index is at 63. Notice that the previous spike before the retrace is at this level as well.
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