As a regular subscriber to Marketclub, I keep on eye on their trading signals on a daily basis because they are extremely reliable on the whole. Anyway a share that caught my eye yesterday was Edison International (EIX) because we have just had a sell signal on the weekly chart at $27.67.

The price has since rebounded to $28.70 but the signal remains in place and I personally think this is a good shorting candidate at this level. (Remember this is only my own personal opinion and it certainly does NOT constitute financial advice).

The reason why I say this is because if you look at the daily chart and plot several exponential moving averages (5,20 and 50), you will see that not only has the EMA (5) crossed under the EMA (20) but the EMA (20) is also on the verge of crossing down through the EMA (50) as well which really would indicate that a strong downward move is on the cards.

The downside could be quite substantial if $27.38 is broken because this is where the current level of support is (marking the low point of the recent trading range).

 

 

Filed under: Stocks

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