Edison Intl. (EIX) declined rather quickly after I placed the trade in an ABC zig-zag fashion. I don't see this move complete yet as it appears that it will at least decline to the 38% Fibonacci retracement level at $66.72 to complete wave (c). But price has already hit my target so I am out of the trade at a nice profit. Here is the trade summary:
Bought EIX put spread May 20 65/72 for $2.74 and sold it for $3.55 for a 30% profit.
HERE IS THE ORIGINAL TRADE SETUP:
Edison International (EIX) is showing signs of a weak wave ((v)) of 5 of (3) and is now undergoing a pullback to the $66.72-$68.89 area. This is the 23% and 38% Fibonacci retracement levels and is also the area of the previous fourth wave, wave ((iv)), so it's a good area to look to exit this short trade. Here is my trade:
Buy to Open EIX May 20 65/72 Put Vertical @$2.74
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PLEASE NOTE: THIS IS AN ELLIOTT WAVE BLOG EXPRESSING AN OPINION AND IN NO WAY GUARANTEES OR IMPLIES ANY PROFIT OR GAIN. TRADE AT YOUR OWN RISK.