MEG – Pullback BUY on Ascending Triangle Breakout

A buying opportunity is presented for Megaworld (MEG), after price pulled back towards the 2.56-2.58 breakout out area performed last November 2. This gives a good buying opportunity to those investors who missed the breakout from the ascending triangle Last November 2. The price target for this particular move is towards the psychological 3 pesos barrier.

However, a not so good sign is that the MACD line is poised to perform a bearish downward cross against the Signal line, so try to make sure the 2.56-2.58 support level holds, before going long with Megaworld.

Still, it is better to set your stop loss point at around the 2.36-2.40 area using a 2:1 risk-reward ratio, in case our planned course of action failed to materialize.