Here is a chart of EDM, a real speccie and penny stock that is well below 5 cents...and let's do some work to see whether it has any chance technically to do a quick rebound.
Observations =============
1. Price of EDM has fallen to a trendline support for the 11th time - each time it has done so, it has managed a rebound either on the day of touching the trendline or after holding on a day or two or a short while. Since it is on the trendline again for the 11th time, will it continue this propensity to do so?
2. Let's also check whether cycle wise it has any chance to do so. The short term cycle showed we have already bottomed out on last Friday as marked on the chart. This means it is expected to soon move into the upcycle very soon.
3.Let's also take a look at the long term cycle of EDM, and we can see that we have already bottomed recently and in fact price is moving in the early stages of a upcycle for the longer term.
In other words, both the short term cycle and the long term cycle are in phase and are expected to move in this upcycle in synergy, offering good chances for a rebound. Together with the trendline support for the 11th time, will this work in EDM's favour as well?
So to answer the question - will cycle indicators work on speccies and pennystocks?
So let's watch how the price will develop in EDM over the next 2 weeks to answer this question, shall we?....and keep our fingers crossed!:)
Cheers,
dascore
EDM Price at posting:
0.0¢ Sentiment: ST Buy Disclosure: Held
