MEG Energy Uptrend Set to Continue? Technically Speaking by Dwight Galusha

MEG Energy Corp. (TSX:MEG) stock is threatening to breakout from a multi-month consolidation/continuation triangle

Dwight Galusha | September 28, 2021 | SmallCapPower: MEG Energy Corp. (TSX:MEG) is threatening to breakout from a multi-month consolidation/continuation triangle. A breakout from this technical pattern would suggest a continuation of the uptrend. A suggested stop-loss order could be placed at the 7.99 price label in case of market failure.

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MEG Energy is a pure play Canadian oil sands producer engaged in exploration in northern Alberta. All of its oil reserves are more than 1,000 feet below the surface and so they depend on steam-assisted gravity drainage (SAGD) and associated technology to produce.

The company’s main thermal project is Christina Lake. Cogeneration plants powered by 85 megawatts are used to produce the steam for SAGD, which is required to bring bitumen to the surface. The excess heat and electricity produced at its plants is then sold to Alberta’s power grid.

Its proven reserves have been independently pegged at 1.7 billion barrels and probable reserves 3.7 billion barrels; that’s significant considering only 300 billion barrels of the 1.6 trillion barrels of bitumen in Alberta is considered recoverable under current technology.

Dwight Galusha is a Chartered Market Technician (CMT) whose work can be found at www.SetYourStop.com

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