Important Stocks To Watch - Breakout Stocks/ Important Developments

Long Term Breakouts To Watch

Stocks At 50 MA & 200 MA

Technical Analysis Of MYEG

MYEG, the company that helps you pay saman online. LOL...

In this article we will take on a journey and explore the technical analysis of its stock price. Do come back once in a while because I will try and analyze this stock from time to time.

6 November 2019

MYEG broke out of 60 min ascending triangle. Target using the asdt target. Green area is support. If stay above this area will likely to move higher. Some resistance in daily chart but short term is turning up.

10 April 2019 Wednesday

19 March 2019 Tuesday

12 March 2019 Tuesday

7 March 2019 Thursday

Since the last analysis, this stock has already broken out of the box and has broken above the 200 MA.

So officially this stock is once again in investing territory. 

By investing territory I mean that quite a lot of investors will have it on their radar simply because of the fact that it is now above the powerful daily 200 MA.

The question whether it will start a new powerful uptrend has yet to be determined.

The stock ran up very fast after it broke above a downtrend line. It then break above the box and the 200 MA and today formed a topping tail.

Topping tail can warn of bullish exhaustion so the stock might be weak in the next few days. That's ok...when a stock runs up so fast you can expect it to be quite tired.

Just like you after you play around of intense badminton. Right?

The area around the top of the box will be a new support for the stock.

As long as the stock stays above the entire box then I believe it has the potential to steadily rise more in the future.

The above is the 60 min chart of MYEG.

Looking at the 60 min chart is like taking a microscope and looking at the internals of this animal called MYEG. You can see clearly how the stock shoot up rapidly once if broke the downtrend line.

I have noticed that many Malaysian stocks and even the KLCI can shoot up very rapidly after they break a downtrend line. So do learn to pay attention to this phenomenon in the future.

Right now I think the move up is a bit tired. So perhaps it needs some rest and sideways trading. Be patient and wait for the next continuation set up. Or it could be a buy the dip setup. 

What setup?

Well another:

  • Break downtrend line
  • Pennant
  • Triangle
  • etc....

only when you see a setup then you buy. If not you would be chasing a hot stock.

19 February 2019

After the May 9 election last year, MYEG was one of the stocks that were affected by the change of government. From a weekly point of view, this stock may be setting a bottom and thus investors are on the lookout for a new uptrend that may bring it higher.

Lets take a look at the daily chart first. I would like to bring your attention to the daily 200 MA. This stock has been below the 200 MA for a very very long time. Whenever you see a stock below the 200 MA it tells you to trade it and not invest in it.

But recently, the stock is drawing very close to the 200 MA and soon it might go back above it. So investors should start to have a look at this stock.

A good sign for this stock is it has broken above a daily downtrend line. This tells us that it wants to change trend and go higher. I believe that the stock needs to break above the box I have drawn and above the 200 MA before it is safe to invest. Otherwise it is still a trading (short term play) candidate.

The chart above is the weekly chart of MYEG.

As you can see, the gap down has caused a lot of damage to the stock. It rose quite a lot from July to October 2018 but quickly drop. That is ok since what we are seeing right now is a possible weekly double bottom.

It is attempting to break above a weekly downtrend line as well. As long as this stock stays above the downtrend line then we are probably looking at a long term bottom in this stock.

The move up in October may have help to absorb the supply from the resistance. Therefore, if the stock manages to start a new daily uptrend and move above the daily 200 MA, it is possible for the stock to climb past 2.00 in the long term.

Technical Analysis Of MYEG 2 April 2018 Monday

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.

Past Analysis 

This is an analysis I did for a friend last year. Just repost them here for your benefit.

Chart courtesy of powered by Tradingview

Analysis I did back in June 2017.

Chart courtesy of powered by Tradingview

The above is an analysis I did back in April 2017

Chart courtesy of powered by Tradingview

So, if you read the above comments you will realize why I was bullish on this stock.

  1. The stock was in a nice weekly uptrend. Its surprising how stocks that are in an uptrend can go higher and higher. The trend is your friend.
  2. It has an economic moat. The stuff it does is government related, the government won't simply give out contracts for e-commerce solutions for online payment of stuff like renewing licence get the idea.
  3. Internet penetration rate. The internet penetration rate in Malaysia is still low I guess. So the saturation point has not been reached yet. If more and more people have access to broadband and the rural areas have faster connection, more people will be using MYEG's services.

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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