Supporters of industrial firm Energy Development Corp. (stock symbol: EDC) took charge of this stock since my January 28 post and effectively halted the price decline before the 5.00 psychological level could have been reached.
With the strong rally in price seen today, EDC is on track to challenge the 6.00 level in the coming days or weeks. The 6.00-6.50 area is the current line in the sand that will decide whether the bullish momentum would take hold for the month of March and onward. Any near-term decline must stay above 5.50 and the ascending trendline. Near-term target is 7.50-8.00.
The TRIX Index has stayed above the zero level for more than a month now, and would form a higher high once price charges north of 6.00.