Edison International Jumps 6.83% In 3 Days As Technicals Signal Bullish Momentum

Edison International (EIX) concluded the latest session with a 3.93% gain at $55.22, extending its advance to three consecutive days and achieving a 6.83% cumulative increase over this period. The technical analysis below evaluates key indicators to assess the stock’s trajectory.
Candlestick Theory
Recent candlestick patterns reveal a robust bullish impulse, characterized by three consecutive white candles with progressively higher closes. The latest session established a new near-term high at $55.31, which now serves as immediate resistance. Support is observed at $52.66 (the session’s low), backed by a consolidation zone between $51.40 and $52.12 from late July. The absence of significant upper shadows in the rally suggests limited overhead supply, though the extended move warrants vigilance for reversal patterns like bearish engulfing or dojis near resistance.
Moving Average Theory
The 50-day moving average ($53.76) recently crossed above both the 100-day ($53.20) and 200-day ($52.80) averages, confirming a bullish long-term trend. Current price action trading above all three averages reinforces upward momentum. However, the sharp 6.83% three-day surge has pushed the price 2.7% above the 50-day MA, indicating potential short-term overextension. This divergence may trigger consolidation or a mean-reversion pullback toward the $54.00–$53.75 confluence zone (50-day MA and Fibonacci level).
MACD & KDJ Indicators
The MACD (12,26,9) shows a bullish crossover, with the histogram expanding positively—a sign of accelerating momentum. Concurrently, the KDJ oscillator registers at 85 (K-line) and 82 (D-line), deep in overbought territory (>80). While this reflects strong upward pressure, it heightens susceptibility to profit-taking. No bearish divergences are yet evident between price highs and KDJ peaks, suggesting the uptrend remains intact but may require cooling-off.
Bollinger Bands
Price is pressing against the upper Bollinger Band (20-period, 2σ), while the bands are expanding—signaling heightened volatility and potential continuation of the trend. A sustained close above the upper band ($55.40) could indicate excessive bullishness and precede a reversion to the mean ($54.20 midpoint). Conversely, the band expansion itself supports trend persistence. Critical support aligns with the lower band ($51.30), which converges with the 38.2% Fibonacci level.
Volume-Price Relationship
The rally’s credibility is bolstered by rising volume, with the last three sessions averaging 5.87 million shares—above the 30-day average of 4.2 million. The highest volume day (7.37 million shares) coincided with the breakout initiation on 2025-07-31, validating buyer conviction. This volume profile suggests sustainable momentum, though declining volume on further gains would signal weakening participation.
Relative Strength Index (RSI)
The 14-day RSI reads 72, marginally above the overbought threshold of 70. While this warns of short-term exhaustion, RSI can remain elevated in strong trends. The absence of bearish divergence (price making higher highs without RSI confirmation) tempers immediate reversal concerns. Traders should monitor for RSI retreat below 70 to gauge whether momentum is moderating healthily or deteriorating.
Fibonacci Retracement
Applying Fibonacci to the swing low of $49.65 (2025-06-20) and high of $55.31 (2025-08-04) identifies key levels. The 23.6% retracement ($53.75) aligns with the 50-day MA and Bollinger mid-band, creating a strong support confluence. The 38.2% level ($52.95) coincides with the July resistance-turned-support zone. These levels offer strategic entry points should a pullback materialize, with the 50% retracement ($52.48) providing deeper support.
Confluence and Divergence
Confluence is notable at $53.75–$54.00, where the 50-day MA, Bollinger mid-band, and 23.6% Fibonacci level intersect. This zone offers robust support. Divergence appears between overbought oscillators (KDJ, RSI) and sustained price strength, indicating near-term exhaustion risk despite bullish momentum and volume alignment. A consolidation phase near $54.00 would be constructive, whereas a breakdown below $52.95 (38.2% Fib) would signal trend vulnerability. The overall technical structure remains bullish, favoring dips as buying opportunities within the prevailing uptrend.