Energy Development Corp. (stock symbol: EDC) has broken the November 29 5.30 high since my first post. After the rally topped on January 6 at 5.75, price has been on a relatively steady decline and is now looking to revisit 5.00.
TRIX has just formed a bearish cross and could threaten a break through its zero level if the 5.00 psychological level does not provide strong support.
The band of resistance around 5.80-6.00 is still aching for a break. Support down below around 4.00 (4.25 is the November 20 low). The gap yesterday was a plus for the bears.
TP’s Advice: Avoid this stock for now.