EDC – A Pullback Buy?

EDC has pulled back towards the 6.55 breakout point/support level in recent days, following its breakout move last April 7, establishing highs at the 6.8 levels. Although price actions has weakened, EDC has presented a buying opportunity to us at the 6.55 levels.

At this price, a tight cut limit can be set at 6.40, so risk in this particular issue is limited, while profit potential is good, and basically limitless once EDC breaks the 5.80 barrier, and enter uncharted territories and establish new all-time highs.

Another possible twist is that one can buy upon the break of the 5.80 with good volume, or average up if one already managed to get shares near the 6.55 support levels. Buy near support, buy on breakout, or buy near support add position on breakout, its up to you to decide.

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EDC – Bearish Breakdown From Descending Triangle

EDC has just broken down below the 5.90 descending triangle support level, confirming one of our scenarios on last Monday’s post about EDC. With this bearish breakdown, we can now expect EDC to try and test the support level and descending triangle price target at 5.30 towards the end of the year.

EDC – Falling Wedge or Descending Triangle?

EDC continues to consolidate inside a falling wedge area pattern, with breakout points seen between the 6.05 to 6.20 levels, with initial price target seen at around 6.70.

However, it also appears that the price is consolidating inside a bearish descending triangle area pattern, with the support level seen at 5.90, and initial price target of 5.30 upon breakdown.

With these two scenarios, what to do next? Well, the best way is to wait for a price breakout, which should be a signal to buy. Still, should price breakdown from the descending triangle, it would be best to stay away from this issue, and try to pick up at the 5.30 levels, provided that price action holds above the gap.