Friday, 27 May 2011
Technically speaking, MEGB has a rather strong support level at RM2.00. Currently this level also act as a support for 100day moving average. The RSI below 30%, sign of oversold. If you are risk taker, then it's a good indicator to buy. However, at today's lunch break, MEGB already breached pass this support level to RM1.95. If this selling trend is unchanged in the afternoon session, then I think the sign of trend reversal may be is still not there and it may drop further. But if buying interest pour in in the afternoon and it closes at or very near RM2, it will form a hammer and the reversal probability is even higher (hammer at support level). To reduce the risk, one may wait to see next trading day's trend and decide whether to buy or not at the end of next trading day.