April Technical Analysis – DRN and EDC

All of my options were assigned over the weekend, so as of this morning, I was 100% cash. So lets check the tape.

DRN


March’s assessment of DRN:

DRN is still in an uptrend, but testing longer term support levels.

The longer term support levels held, and DRN meandered its way higher. Slow and steady, all the way from last July.

EDC


Here’s what I said in March:

EDC has moved sideways for most of 2011, and broke some key support levels recently.

As you can see, EDC subsequently rocketed up to $45/share (a measly 28% gain). As of Sunday, it appeared that EDC had found support at the 20 DMA, but broke below that today. On the plus side, EDC did find support near the 50 DMA.

All in all, EDC has bounced around quite a bit, but hasn’t made much progress from the high 30’s since last October.


There was definitely some event driven trading at the market open today, presumably brought on by a token downgrade of US debt by Standard and Poors.

Yes…the same Standard and Poors that missed the boat on all those all those CDOs. Everyone knows that the US has debt issues, and the actual “rating” didn’t change.

I’m guessing the long term effects will be nill, but then again, I’m guessing.

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About T. Knight
Blogging about my journey to financial independence via investing for cashflow.

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