Sunday, February 26, 2017

Technical Analysis of Mehgna Petroleum on 26 Feb 2017

Technical Analysis of Mehgna Petroleum on 26 Feb 2017

This is no buy/sell recommendation - just a trial to see if Technical Analysis (works to an extent) in Dhaka Stock Exchange.

All the Oils seem to be on a bullish move. In 2016 market priced them below 10 PE. After bottoming in Q1 ’16, they were on the rise slowly. From the beginning of 2017, it seems all are on a bullish move.

Fundamentals: I have always been a fan of the oils mainly due to their dividends. Annual Profit is steady around Tk 2 Bn from 2014 onward. EPS ~ 20 & PE ~ 10.



2015
2016
1H '17
Profit
2,027
1,843
1,090
EPS
18.80
17.10
10.11
Dividend
105%C
105%C

NOCFPS
29.0
110.0



Now to the Technicals: It broke a major Resistance ~190 recently. Now if it can break 210-215, then next Supply zones are around 260, & ~315.

The way it is shaping up, a long position could be taken (if already not taken). Hope it will give another buy opportunity ~200 before going up. It is for the risk-takers with Stop Loss at 190.

Best wishes . . . Weekly chart given below:


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