July 15 Chart of the Day - Edison International
Highly precise price action technical analysis offers the strongest trading edges and the most opportunities across the markets, making it the foundation of our reviews.
Edison International (EIX) may not be a household name for many traders or investors, but it plays a critical role in powering millions of homes and businesses across Southern California.
As the parent company of Southern California Edison—one of the nation’s largest electric utilities—Edison International focuses on delivering reliable energy while investing heavily in clean power infrastructure and grid modernization.
Headquartered in Rosemead, California, this century-old company is quietly positioned at the forefront of the energy transition in one of the most densely populated and environmentally ambitious regions in the country.
While its long-term fundamentals remain intact, the stock price is well off its all-time highs and appears to be in search of a bottom.
As requested, this analysis will take a price action technical analysis approach to assess key levels and potential next price moves for this chart.
Consistent profitable investing and/or trading requires a structured, rules-based approach to price action analysis. Proven processes, disciplined risk-reward management, and precise execution create the foundation for long-term success.
When combined with powerful mental performance strategies, this method becomes the ultimate blueprint for thriving in any market, on any time frame.
Since May 2023, we've showcased over 550+ Charts of the Day and provide a Free Quick Start Guide to traders with ambitious income goals for our patent-pending NeuroTrading Method™.
Monthly Chart
On the monthly chart we can see the relentless selling pressure from the $88.77 all time highs. Price is rapidly approaching long term previous support and demand zone in the $45 area.
A demand zone is one of the five price action tools we teach. It's a price area on a chart where previously there was a high demand for the underlying asset based on historical price action in and around the same area where buyers could be prepared to purchase at different levels within the zone. A demand zone is present within the light gray rectangle and has a high buying potential.
This kind of movement highlights why a cautious and well-informed approach is essential when evaluating a stock’s short to mid term outlook.
Weekly Chart
On the weekly chart, we can see with much more clarity the non-stop selling back towards a change control zone that presents itself on this time frame (long dark gray rectangle).
Change control zones are one of the five price action tools we teach when charting anything. By definition, they are an area that represents where neither the bulls nor bears are in charge. Price can slash through the zone with seemingly reckless abandon, price can respect the top or bottom from outside it or within it. Or, price can trade aimlessly sideways within it. When price breaks away from the zone it can often get drawn back to it like a magnet. And in this case we see all of the above are true.
Technically speaking, it wouldn't be surprising to see price continue traversing the change control zone before potentially making a longer term directional decision.
It goes without saying though, the only guarantee in the markets is that price cycles. It cycles up and it cycles down across all time frames and all charts and rarely, if ever, moves in a straight line.
Only time will tell for sure what price will do next...
We’ve combined Fibonacci levels with key support/resistance zones and trend analysis to pinpoint potential price levels of interest and future targets.
With precision-focused charts like these, both traders and investors can confidently build and execute their strategies.
So what's next?
We don't make predictions...
Nobody knows for sure but using these 5 price action tools traders and investors can develop levels of interest in both directions.
- Support/Resistance
- Trend
- Fibonacci
- Supply/Demand Zones
- Change Control Zones
ChartPros provides the exact methodology in its price action technical analysis courses to create charts like this with the most precise and accurate levels from which investors and traders can formulate their respective trade plans.
Take a look at the charts and let us know what you think. We'd like to hear from you in the comments sections.
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