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Writer's pictureHONG WEI GIET

MYEG (0138) - Technical Analysis

Updated: Jul 27, 2020

Historical Movement

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1) After 2018 Malaysian general election, MYEG have a very great gap down due to market panic about uncertain of new formation of government. MYEG formed a small W-shape and breakout neckline, RM1.03 and first level of upward satisfaction: -

- RM1.017 - RM 0.720 = 0.297

- RM1.030 + 0.297 = RM 1.327

2) MYEG continued the upward trend with a retracement at RM1.360 and completed a wedge pattern at RM1.230 on Aug 21, 2018. Upward satisfaction: -

- RM1.360 - RM0.790 = 0.570

- RM1.140 + 0.570 = RM1.710

3) However, MYEG formed a head and shoulder pattern (bearish pattern) and breakout neckline at RM1.520 on Oct 18, 2019. 1st level of downward satisfaction: -

- RM1.819 - RM1.515 = 0.305

- RM1.520 - 0.305 = RM1.212

4) The downward trend continued with a lower low charting pattern and tend to stop falling after it meets 2nd level of downward satisfaction: -

- RM1.212 - 0.305 = RM0.907

5) With the formation of symmetrical triangle charting pattern and breakout RM1.020 (Transaction volume 263.863) on Mar 6, 2019, we able to upward satisfaction: -

- RM1.410 - RM0.790 =0.620

- RM1.000 + 0.620 = RM1.620

6) After MYEG met 1st level of upward satisfaction, it started again form a head and shoulder and breakout neckline, RM1.403 and completed 2 level of downward satisfaction: -

- RM1.350 - RM1.698 = 0.348

- RM1.403 - 0.348 = RM1.055 (1st level)

- RM1.055 - 0.348 = RM0.704 (2nd level)

Recent Movement

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1) Based on MYEG shares price historical movement, we able to conclude that RM0.800 is a very strong support level.

2) After Mar 19, 2020, MYEG formed an upward trend and it failed to challenge a middle term downward line on May 21 / Jun 19 and Jul 2, 2020, respectively.

3) MYEG shares price breaks out the upward trend on Jul 10, 2020, and closed below RM1.455 on July 24, 2020. Based on vertical transaction volume (Fixed range starting date: Mar 19, 2020), RM1.455 is a concentration trading level that will impose a high selling pressure on MYEG shares prices.

4) If MYEG shares price unable to trade above RM1.455 in the next 3 trading days, it might drop to RM1.310 which is the second level of concentration trading level.

5) Average MYEG pricing since Mar 19, 2020, = RM1.280.

6) If we are value investor, we need to try to buy and hold below RM1.280

7) If we are speculators, we can try to buy MYEG after MYEG able to breakout the middle-term downward line.

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