Media General Forms Huge Breakout
Shares of Media General (NYSE: MEG) are trading higher on the session by 10.41%, at $4.03. The stock hit an intra-day high of $4.15 a few minutes ago on much higher than normal volume.
Media General has been forming a wide, sweeping consolidating pattern above the 20-day and 50-day moving averages for the past two months. Today, the stock has managed to burst through the top of that range ($3.99); this is extremely bullish for the name.
Given the 21.85% short interest in the name, as well as 18.6 million share float (relatively small), you can expect further upside pressure in the next few days.
The best way to play the name is to buy shares here with a stop just below $3.99. This has the feeling of wanting to gap higher on Monday morning; that thesis would be strengthened if shares of Media General close on the highs.
Media General, Inc. is a provider of local news and information over multiple media platforms principally in small and mid-size communities throughout the Southeastern United States.
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