The announcement that Strathcona Resources has bought roughly 6.66 million MEG Energy shares for about $190.8 million created an immediate, measurable bump in MEG’s market activity. Within minutes of the press release, the stock opened roughly 2‑3 % higher than the prior‑day close, reflecting the $30‑$35 per‑share premium Strathcona paid relative to the prevailing market price. The purchase also injected a sizable block of demand, pushing average daily volume to more than three times the 10‑day average (≈1.2 M vs. ≈350 k shares) as market participants reacted to the news and as Strathcona’s brokerage‑executed order swept through the order book.
From a technical standpoint, the price breach of the prior‑day high and the subsequent hold above the 20‑day simple moving average (SMA) suggests short‑term bullish momentum. The spike in volume confirmed the move, and the relative‑strength index (RSI) briefly entered the 60‑65 zone, still below over‑bought levels, leaving room for further upside on the day. Traders could consider entering long positions on a pull‑back to the 20‑day SMA or the breakout level, targeting a 4‑6 % move toward the next resistance around the $45‑$47 range, while placing a stop just below the day’s low to protect against a rapid reversal once the initial buying pressure eases.