EDC is a stock worth looking at for this week or probably next as well. EDC's chart below suggests that it is resting on its support/resistance at 6. Should EDC break past such resistance this week, it may have another trek back up to 7.
The chart below is EDC's price action in 4 months time. It's price is currently at either its support or resistance indicated by lines 1 and 2. Line 1 is the resistance and line 2 is the support. Which of which is true? Only future price action will tell.
However, EDC's current RSI suggests that selling is stronger than buying. Should this hold true, Fibonacci suggests that the next possible entry points are at 23.6% Fib which is at around 5.93 or at 38.2% Fib which is at 5.8. If both Fibonacci supports fail to hold, next entry would ideally be at 50% Fib which is at around 5.7.
Despite EDC's current RSI, it may still get back up considering that Dow is strengthening (temporarily). Line 2 should be monitored as it is EDC's support. EDC has gained some strength and should be a stock worth looking at.
On the fundamental side, EDC's interim EPS is way much higher than its projected year end EPS and its P/E ratio is quite low at 40 in comparison to other stocks in its sector.
No comments:
Post a Comment