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Forget Apple: 5 More Big Stocks to Trade for Gains

Edison International

Last up is $14 billion electric utility Edison International (EIX - Get Report). Like News Corp., Edison is an uptrending channel trade that's seeing a bounce off of trend line support this week.

As with most real world trend channels, Edison hasn't obeyed its channel perfectly in the last year. Back in November, shares tested a break of trendline resistance. It's pretty common for trend channels to get violated; it typically occurs when a large sentiment shift (such as a major trade from a single institution) shoves the supply and demand balance off-kilter, but in both NWSA and EIX, a tweezer top candlestick pattern put prices back in their place in short order.

For a channel trade, it's crucial to wait for the bounce off of support. Remember trendlines do eventually break, and when that happens, you don't want to be left holding the bag. A bounce confirms that there's still demand for shares below that support level. With EIX in bounce mode yesterday, I'd throw the buy switch on the stock's next white bar day.

To see this week's trades in action, check out the High Volume Technicals portfolio on Stockpickr.

-- Written by Jonas Elmerraji in Baltimore.


Follow Stockpickr on Twitter and become a fan on Facebook.
At the time of publication, author had no positions in stocks mentioned.

Jonas Elmerraji is the editor and portfolio manager of the Rhino Stock Report, a free investment advisory that returned 15% in 2008. He is a contributor to numerous financial outlets, including Forbes and Investopedia, and has been featured in Investor's Business Daily, in Consumer's Digest and on
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BMY $67.01 0.00%
EIX $59.36 0.00%
MRK $53.01 0.00%
NWSA $14.35 0.00%
X $8.07 0.00%


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