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MEG

MEG Prediction for Reversal and Good Buy PointsHey Everyone. Over the past few weeks I've been following MEG (Meg Energy) on the TSX and I'm sharing my prediction for a reversal of current price. With a beta of 3.11 MEG is very volatile and over the past few days a few strong patterns have surfaced, obviously the small double bottom (#2) APR 7-APR 8 that proved to be true. Now we see a double top surface (#1 & #3) after APR 8. This could indicate a consolidation trend with a descending triangle pattern, illustrated in the green which could be followed by a sharp decline in price breaking current support @$2.62. On the other hand we could see a sudden and immediate downturn at a similar rate that it fell when the stock priced dropped in March due to COVID, because of the current uncertainties around Crude prices. This would be key to watch to see if this downtrend is interrupted by previous support (#5 &#6) This would create a great buying opportunity with a potential of a 100%+ return if Crude prices stabilise or rise at these times. MEG is a fairly solid company that will most likely pull through this crisis and be successful afterwards, they're also one of the main oil producers here in Canada which many larger companies rely on. The balance sheet isn't amazing, however the threat of bankruptcy is low since they're a key player in the Canadian Crude economy and could be possibly subsidised by the Canadian government if things take a downturn within the company. Obviously the price and everything is completely up in the air and relies on the price and demand of Crude oil. Let me know what you think!
TSX:MEG
by Hitzy2000
WCS differential seems like an attractive play in the short term 1) Midwest (PADD 2) refineries are still operating in the low 80% utilization. 2) Differential increased to ship more crude by rail, which had dropped to a recent low after initial AB cuts. 3) Jason Kenney's new UPC government is looking to extend the Albertan oil production cuts into 2020 as Line 3 looks delayed. 4) With the rise of U.S. ultralight crude, refineries must blend product with a heavier, lower gravity, crude like WCS. With the collapse of Venezuelan exports to the United States and the slowdown of Mayan imports, plus OPEC cuts, there is little alternative to WCS as a blendstock crude for Permian light. 5) Transmountain pipeline decision on Tuesday may have a nominal impact. I prefer to play the differential through CCX (Canadian crude ETF).
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by chriskanaan