Edison International (NYSE:EIX) is a leading public utility with a major presence in Southern California. The stock has been declining sharply since the wild fires began in the Los Angeles area last week. On December 1st, 2017, EIX stock was trading as high as $81.96 a share. Traders should note that the stock is now trading around $68.00 a share as the wildfires in Southern California continue to spread. The stock is now trading below its important 50 and 200-day moving averages. This chart pattern indicates weakness in the equity and potentially further downside. 

The next major support area for EIX will be around the $62.00 level. This is where the stock should be defended by the institutional money. In February 2016, EIX stock broke out from this area. Very often, when falling stocks retest there prior break-out levels they will be supported and defended. This is a trade area where I will look to get involved in the stock on the long side. I will be trading the stock by buying the equity or by buying call options in the name. 





Nicholas Santiago
InTheMoneyStocks