EDC Stock Chart Analysis


One of the company that I have been following is EDC or Energy Development Corporation. And in this post I wanna share my own Technical Analysis (TA). I used in my TA the following tools:

  • Stock Chart by COL Financial
  • Candle Stick graph
  • Fibonacci Retracements
  • 10 SMA
  • 30 EMA
  • 200 SMA
  • Volume
  • Moving Average Convergence & Divergence
  • Relative Strength Index

If you haven’t still memorize how those above tools functions, you may check back on these related topics:

So let’s begin, below is the stock chart of EDC from January 2014 to present.
EDC1

Fibonacci Retracements

As you can notice I started to plot my Fibonacci Retracements on somewhere in April 2014. My reason for this is very simple, it is in this period that the 10 SMA and 30 EMA stayed above the 200 SMA and also the start of the “Bull Run” for this stock. Also if you are that observant, you will notice that most significant movements occurred in the Fibonacci Retracements lines. And the latest movement in the right most part of the chart is the stock price is retracing to the 50% retacement line for the 3rd time thus testing its Support Level.

Short Term Consolidation

The first time it reaches the 50% it bounced back and reached the 38.2% retracement line and for the 2nd time it falls back to 50% and then it moves back to 38.2% and then again back to 50%. Thus I labelled it as short term consolidation, the sellers and buyers has yet to decide on what trend they will go will it be Uptrend or continue its Downtrend?

Market Interest

Interest of a certain stock can be measured through its Volume, the higher the volume means the higher the interest and the lower the volume the lesser the interest of the market participants on a particular stock. In this case with EDC volume has been decreasing since it started its downtrend on May 2014. And for me this is the best way to accumulate more shares since it has been neglected by the market that is why I put a check mark on its volume chart.

Moving Average Convergence & Divergence

As indicated in the MACD graph, it is already near the Zero (0) line. Most traders are looking into this indicator since a break on the zero area will trigger them to buy EDC shares since it will indicate an upward trend. But as of this time an attempt to pass above zero has been stopped for a while thus I’m putting an exclamation mark on this indicator to excite myself. LOL

Over Selling

Relative Strength Index (RSI) indicator for EDC indicates that its shares has been oversold since it is already at around 30. This means that EDC shares are undervalued and I consider it with a check mark to indicate that buying some shares is already on a GO.

Conclusion:

Therefore I conclude that base on my own technical analysis, EDC must not to go down from its Fibonacci Retracement of 50% to 61.8% in order not to break its support level @  around Php 7.11. For it to move upward, it needs to break it support level at 38.2% retracement line or @ around Php 7.7 on its stock price.

P.S. This technical analysis is for personal purposes only and does not authorized anyone to follow all that has been discussed in this post. Personal research of each stock still best recommended in choosing your favorite company to invest or trade.

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Basic Steps on How to use COL’s Charting


Here is a transcript below on how to install Java charts to start viewing some technical analysis of your favorite companies.

COL Financial – Philippines

  • For Mac users please refer to the instructions located in this page

    1. Go to http://www.java.com and click on the “Free Java Download” button.

    2. Click on “Agree and Start Free Download”

    3. Once the download is complete open the file and click on the “Run” button.

    4. Click on “Install >” and follow the directions.

    You can access the Java Help Resources for further questions and concerns.

    Now you are ready to begin exploring the Charting platform.

    Here are the basics in using the COL Charts.

    To begin go to and click Quotes ⇒ ChartingquotesExample below is the of 10 years chart of Jollibee Foods Corporation (JFC), this will appear after clicking quotes and charting.

    chartingMultiple company tickers can be entered on the chart and also additional technical indicators like the Moving Averages (SMA, EMA), Volume, Moving Average Convergence & Divergence, Relative Strength Index, Support & Resistance lines and many more. Sample graph below is my own way of using the chart.

    add indicators

    You can learn more with COL “How to Use the Java Charts

    Happy Investing and Learning the basics.