Sometimes we can bite off more than we can chew. That's the story of MYEG, a company that obtained a license to handle the renewal of working permits for foreign workers. The government has now agreed to the award of more license instead of giving MYEG the monopoly in this business. For more, go here.
Given the sharp rise in MYEG share price - from RM0.50 in May 2013 to about RM3.00 recently - this negative news can end its uptrend. I see the immediate support levels at RM2.40 or RM2.20. If these two support levels fail, then it could go down to RM1.55.
Despite the much lower price as compared to last week, I think it is advisable to reduce position in this stock. Something are not meant to be....
Chart 1: MYEG's weekly chart as at April 10, 2015 (Source: ShareInvestor)
Chart 2: MYEG's monthly chart as at April 10, 2015 (Source: ShareInvestor)
Note:
In addition to the disclaimer in the preamble to my blog, I hereby confirm that I do not have any relevant interest in, or any interest in the acquisition or disposal of, MYEG.
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