September 8, 2015

EDC is a possible bounce play candidate. It found support at  50% Fibonacci retracement from its 7 year high . Monthly chart below:

edcmonthly

The level , 5.45,  is also  61.8% Fibo retracement from 2015 high, with reference to 2013 lows. Weekly chart below:

edcweekly

The  RSI is  showing a bullish divergence. At the bounce off the Fibo level , a doji candlestick was formed , thus increasing the probability of a reversal. Possible capitulation supported by high volume.

edcdaily

EDC is still on a downtrend. I am merely expressing the possibility of a bounce. The gap from 6.24 to 6.3 serves as an area of resistance.

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