Hitzy2000

MEG Prediction for Reversal and Good Buy Points

TSX:MEG   MEG ENERGY CORP
Hey Everyone. Over the past few weeks I've been following MEG (Meg Energy) on the TSX and I'm sharing my prediction for a reversal of current price. With a beta of 3.11 MEG is very volatile and over the past few days a few strong patterns have surfaced, obviously the small double bottom (#2) APR 7-APR 8 that proved to be true. Now we see a double top surface (#1 & #3) after APR 8. This could indicate a consolidation trend with a descending triangle pattern, illustrated in the green which could be followed by a sharp decline in price breaking current support @$2.62. On the other hand we could see a sudden and immediate downturn at a similar rate that it fell when the stock priced dropped in March due to COVID, because of the current uncertainties around Crude prices. This would be key to watch to see if this downtrend is interrupted by previous support (#5 &#6) This would create a great buying opportunity with a potential of a 100%+ return if Crude prices stabilise or rise at these times. MEG is a fairly solid company that will most likely pull through this crisis and be successful afterwards, they're also one of the main oil producers here in Canada which many larger companies rely on. The balance sheet isn't amazing, however the threat of bankruptcy is low since they're a key player in the Canadian Crude economy and could be possibly subsidised by the Canadian government if things take a downturn within the company. Obviously the price and everything is completely up in the air and relies on the price and demand of Crude oil .
Let me know what you think!

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