I too have the support at 32 cents... and overhead at 0.34. So again MEO seems to be mirroring the major indexes....short term range bound and could go either way atm. My plan was to take a small profit and wait for confirmation. If it falls past 32 then 30 cents will be psychological support and then as you say previous lows are likely to be tested...
The SPY and DOW are now under the 200ma but over the 50ma. They stalled, as we headed up last week, right on the peak of the right shoulder of a massive head and shoulders pattern playing out for over a year now! I follow the SPY500 and have 1100 as a critical level which it has played with and currently sits upon. If we can head up from 1100 and break 1150 then I'll reinvest longs in the market, however, the converse is true for me too. So I sold everything AND am only playing a gold stock instead. Gold is bouncing of its 200ma which has been support mostly for a decade and therefor seemed like a low risk play to me.
It's positive to see the AUD going well which speaks well for risk appetite and hence investors looking to shares like MEO, however, my concern is what will prop up our economy / share prices going forwards when the US GPD and manufacturing is dropping. So mixed messages imo.....
Overall, I'll watch the US indexes closely and take small trading possibilities in shares like MEO, however, I do not think this is a time to buy, hold and look away!
MEO Price at posting:
33.5¢ Sentiment: None Disclosure: Not Held
