September Technical Analysis – EDC

As mentioned here, I decided to put my September technical analysis of ETF’s on hold for a week. You never know what you’re going to get from a day of Fed meetings, let alone 2!

Let’s revisit my August technical analysis for EDC:

Short term resistance is now at 25, with EDC currently trading around 20 (which is awful close to the near term low). Don’t hold your breath…there isn’t too much (technically speaking) to hang your hat on at this point. We’ll see what happens this month, and hopefully September will have a little more info to go on. On the plus side, EDC is still within it’s maximum 20-day price decline (%), so no need to adjust my position size based on volatility. However, I am tightening up my max loss rules portfolio-wise (I’m now using a max loss of $3,000 per trade, rather than 10,500). With it’s current price at 20, this means that I need to reduce my EDC position by 200 shares.

As of last weekend, EDC was still in a long-term downtrend, but looked like it had found short-term support around ~20.00.

Here is the DRN chart as it stands today.
EDC price action indicates near term, mid-term, and long term weakness

The next price support is around $5.00 (!), which was set back in early 2010. We’ll have to wait and see what Monday/Tuesday have in store for us. Hopefully, we won’t see a reverse split anytime soon.

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

One Response to September Technical Analysis – EDC

  1. Jean White says:

    “Past performance is not a gurantee of future results.” for me,this line, is personal, factual, and non-fictional.

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