Megaworld Corporation (MEG) now looks like a blue chip that is going to go green in a major way in the near term. As you can see from its long term chart, the stock has carried itself back just above its long time adjusted resistance of Php5.00. What tells us that the stock will most likely break to the upside soon is the fact that despite the selling that it is seeing at around Php5.00 (an activity that you expect to happen on a resistance), MEG has still managed to keep itself afloat. This suggests that the selling has so far been able to get absorbed pretty well. This means that the investors who are catching the stock at a relatively high price are already looking past Php5.00. In any case, a successful move past its resistance area of Php5.00 to Php5.30 may easily send it to Php6.50 to Php7.00. In other words, we can expect a sudden surge in price following a break given the lack of natural sellers (no resistance) above Php5.30.
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