Edison International Slips 1.68% As Bearish Technicals Signal Extended Downtrend

Edison International (EIX) declined 1.68% in the latest session, closing at $51.42 after fluctuating between $51.155 and $52.44 on moderate volume. This technical assessment evaluates key patterns and indicators based on the provided historical data.
Candlestick Theory
Recent price action shows a bearish engulfing pattern formed on July 24, where the session’s candle fully consumed the prior day’s gains. Key resistance is established near $53.20 (April-June swing highs), while support emerges at $50.50, validated by multiple tests in mid-July. The breach below the July 22 hammer low ($51.145) suggests weakening bullish momentum, with a retest of the $50 psychological level plausible if selling pressure persists.
Moving Average Theory
The 50-day, 100-day, and 200-day moving averages exhibit a bearish alignment, with the shorter 50-day MA ($53.10) positioned below the 100-day ($54.80) and 200-day ($56.40). This configuration indicates entrenched intermediate-term weakness. Recent prices remain suppressed beneath all three averages, reflecting sustained downward momentum. The widening gap between the 50-day and longer-term averages underscores accelerating bearish sentiment.
MACD & KDJ Indicators
The MACD histogram resides in negative territory, signaling bearish dominance. Recent convergence between the MACD line and signal line near the zero axis has failed to trigger a crossover, suggesting limited upside potential. Concurrently, the KDJ oscillator shows the %K line at 28 and %D at 33, nearing oversold thresholds. However, the absence of a bullish crossover divergence implies any rebound may be tentative. These momentum tools collectively suggest persisting downward pressure without conclusive reversal signals.
Bollinger Bands
Price currently trades near the lower Bollinger Band ($50.80), reflecting elevated selling pressure. Bandwidth has expanded moderately since mid-July, indicating rising volatility. Historically, tests of the lower band preceded minor rebounds, but repeated breaches in June-July underscore the established downtrend. Failure to reclaim the 20-period midline ($52.80) would reinforce bearish control.
Volume-Price Relationship
Volume surged during key breakdowns, including the June 9 sell-off (-8.07% on 10.2M shares) and April 30 decline (-8.89% on 11.3M shares), validating bearish conviction. Conversely, recovery attempts saw muted participation; the July 10 rally (+1.30%) occurred on below-average volume. Recent sessions show volume tapering during declines, hinting at reduced selling exhaustion, though confirmation requires accumulation during upside moves.
Relative Strength Index (RSI)
The 14-day RSI reads 38, hovering near oversold territory but not yet breaching the 30 threshold. While this may suggest diminishing downside momentum, the indicator has remained below 50 since early July, reflecting persistently weak internal strength. Notably, oversold RSI readings in late June failed to catalyze sustained recoveries, reinforcing that oversold conditions alone are insufficient reversal signals amid strong trends.
Fibonacci Retracement
Using the April swing high ($88.00) and January low ($49.06), key retracement levels emerge at $65.60 (38.2%), $60.50 (50%), and $55.40 (61.8%). Price stalled near the 50% level in April-May before resuming its descent. The current quote trades below all major Fib levels, with the 61.8% retracement ($55.40) now acting as overhead resistance. Confluence exists near $55.40–$56.00, aligning with the 200-day MA and prior consolidation zones.
Confluence and Divergences
A significant confluence of resistance appears around $53.20–$54.00, where the 100-day MA, July swing highs, and Bollinger Band midline converge. Bearish alignment across moving averages, MACD, and volume signals strengthens conviction in the downtrend. However, the oversold KDJ reading slightly diverges from the RSI’s neutral positioning, introducing ambiguity regarding near-term exhaustion. Probabilistically, predominant evidence supports a continuation of bearish momentum unless price reclaims the $53.20 resistance cluster alongside corroborating volume.