MYEG is one of those steady winners in the stock market that has produced a nice return for its investors. My experienced with MYEG started when I used it to pay for the renewal of my driving licence. I think it costs only RM 2 for the service fee but it saved my time by me not needing to go out to JPJ and renew the licence.
I think the e-solution to paying bills and stuff will continue to evolve and grow as Malaysia gets more and more connected. Therefore, the future for MYEG is bright compared to many other companies.
I have analyzed this stock in the past but I did not shared it in public. A broker friend asked my opinion on it. I was wrong about the short term fluctuations of this stock but I did tell him that I was bullish on the stock long term for some reasons.
I will attached the analysis I did last year below for your benefit.
MYEG had a really nice run up these 2 weeks.
The chart above shows the daily chart of MYEG. It recently broke out above a resistance area. Some may see it as an ascending triangle breakout (which I have drawn using black lines) and some might see it as a cup and handle breakout.
Well whatever it is, it is very clear that the stock is in an uptrend. It is staying above its rising 50 MA and rising 200 MA and this is good for the stock.
If you take a look at the unusual volume which I have highlighted, it also tells investors that the stock was being accumulated. Unusual volume in a stock can often point to buying interest in the stock which will eventually help to send the stock higher.
The support area to watch will be the previous high that was overcome. Technical analysis concept will tell you that a resistance once overcome becomes a new support.
At this moment, one should be a bit cautious in buying as the stock has reached its measured move target. It does not mean that the stock will go down. It means you should be cautious if you want to chase the stock. It also means that if you want to buy the stock, you should be patient to wait for a continuation pattern to setup in the daily chart or the 60 min chart.
The chart above is the weekly chart of MYEG.
For those of you who have gone through my Beginners Guide To Trend Trading, you will realize that this is the kind of setup that you want to look for when buying stocks for trend trading.
Look how the stock is in a weekly uptrend. Notice how it stays above its weekly rising 50 MA and 200 MA most of the time. Every layer of consolidation now acts as a long term support for the long term investor. Therefore, the long term investor should have comfort that the stock is well supported.
This is an analysis I did for a friend last year. Just repost them here for your benefit.
Analysis I did back in June 2017.
The above is an analysis I did back in April 2017
So, if you read the above comments you will realize why I was bullish on this stock.
That was my understanding back then. Perhaps MYEG might have new stuff coming out but anyway stocks that are in an uptrend then to go up for a reason. Once we identify them and are confident enough in the company's 5 year growth then it will be a good long term investment.
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