At the end of every week, I decided to follow up on the stock picks I had posted at the start of each week. Last week, I posted a buy the dips on URC and an avoid if breakdown on EDC. Let me start on EDC.
EDC still managed to hold onto its support at 4.65. Notice, however, that for the past week, it has been trying to break above the 4.75 to 4.80 levels but failed. I retain my recommendation to avoid if breakdown. EDC looks very week and susceptible to breakdown. Indicators remain bearish.
URC managed a high of 28.50 last June 4. Unfortunately, the Dow went down by 300 points that Friday. It gapped down to open at 27 the next Monday and hasn't touched 28.50 since. Should we be worried? I recall I said I would only remain bullish on URC if it is able to hold above 26.50 to 27. It fell to as low as 25 pesos last week. In my opinion, this failure to hold above the mentioned support is just an indication that URC is not ready to trend yet. URC is extending its sideways move but notice that it has been forming higher lows. Could an ascending triangle be in the works? Support of this ascending triangle is at 24.50 but to raise the likelihood of breaking above its resistance at the 28 level, it should no longer go near this support. Stochastic oscillator looks poised to cross up.
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