EDP is a Portuguese Electricity Provider Company. Following some previous patterns of previous years I show here two of the possibilities I believe it will happen and how I will play them. Even though this weekend there were some news regarding China Three Georges increasing their share on EDP the market still shown a down trend. I am already on short position until it reaches the target support area 1. After that area is reached if it keeps breaking down I will enter again on short positions and sell on two different stages until the support area 2.
If on either of the support areas there is a strong pullback I will wait until it breaches previous support lines and buy long positions and sell at new high support line close to 6€.
I believe this increase will happen not only due to patterns, but also due to some good company investments on new renewable energy sites and technologies, and eventually the increase of China Three Georges companies shares will keep pushing the company on a good path and increase its value.
Feel free to share your thoughts as my view doesn't mean it is the correct.
If on either of the support areas there is a strong pullback I will wait until it breaches previous support lines and buy long positions and sell at new high support line close to 6€.
I believe this increase will happen not only due to patterns, but also due to some good company investments on new renewable energy sites and technologies, and eventually the increase of China Three Georges companies shares will keep pushing the company on a good path and increase its value.
Feel free to share your thoughts as my view doesn't mean it is the correct.
Comment:
Correction: Sell at new high support line 4.8€ and hold some stocks in portfolio until it tries 5.5€ and 6€