Mining stocks seem to be the place everyone is going to escape this broad based sell-off, which is why we have been highlighting miner after miner over the last couple of weeks, and have been right in our calls so far. TSX:EDV is another miner that has a very bullish chart formation, worthy of further analysis.
The stock has actually been in an uptrend for about a year now when shares were trading as low as $3.80 in late-2014, as compared to today’s close of $8.09 per share. The uptrend is recently looking like its picking up steam and with major resistance 25% away from these levels, we felt this trade idea had plenty of merit. As mentioned, the next major resistance level looks to be around the $10.00 level, which is close to 25% away from these levels, and would mark our sell price for this trade. Looking at support, the $7.50 level as well as the $7.25 level should bring in buyers on any share price weakness. We would not take any further risk than the $7.25 level, which we would mark as our stop-loss level.
Our trade strategy would be to enter this stock on strength over the next few days. If however we get some share price weakness instead, we would try and pick off cheaper shares around the $7.50 support level, then try and ride this stock up the $10.00 level.
The stock price direction for the day for EDV:CA is UP. This stock is currently not trending in any direction or the stock may be fluctuating over the last 5 to 7 days, but after all the fluctuations, finds itself in roughly the same price point as it did when BullishInvestor.com started analyzing it 7 days earlier. As a result, the trend for this stock is too weak to properly analyze at this time. That being said, short spurts of share price increases or decreases can still occur even though a trend has not been properly analyzed which is why watching the BullishInvestor.com daily ratings may be able to pinpoint quick entry and exit levels in this stock. Based on BullishInvestor.com’s proprietary algorithms, EDV:CA is currently signalling NEUTRAL.
The most recent Candle Stick pattern for EDV:CA is the Belt-hold.
There are two possible reasons for the Hold rating currently given to EDV:CA. The first reason is that there may be indecision among the technical indicators or most of them may be neutral for EDV:CA. If the stock chart looks flat lined or is in the midst of a trend direction change, most likely this is why EDV:CA is showing Neutral. If, however the stock is currently in a visible up or down trend, the reason for the Hold may be because the BULLISH or BEARISH rating has already passed.
The last BUY was registered on Mar 01, 2024 when EDV:CA was trading at $ 23.63. Armed with this knowledge, there may still be some more strength left in this current trend or it may be near a tipping point, the market has not given a clear indication yet.
As such, it may be a wise decision to hold your stock or continue to wait on the sidelines in EDV:CA until BullishInvestor.com changes the rating for EDV:CA.