“Game on” For Activision Blizzard Stock | Technical Analysis
After peaking on October 1st and hitting its all-time high at 84.68, the Activision Blizzard Inc stock (NASDAQ: ATVI) sold off heavily and was forced to re-test the levels last seen in January 2017. This down-move wiped out almost two-years-worth of gains, perhaps hurting the trust of investors. But apart from the disappointed investors, there could be new ones, who seek good investment opportunities at current levels, evident by the latest rebound in the stock.
From the technical side, after falling sharply throughout the whole of October, the stock’s downside momentum slowed in the beginning of November and started gradually moving lower, trading within a falling channel formation. This has been the case up until yesterday, when the stock finally exited through the upper bound of that channel, sparking a bit of hope in the eyes of potential buyers. Such a move might raise interest again, which could lead ATVI back up towards November highs. This is why we will take somewhat of a bullish approach, at least for a short-while.
Before examining higher levels, we would like to see a clear break above the 48.08 barrier, marked by the high of February 5th. This way, we could target the next potential area of resistance between the 51.48 and 52.91 levels, where the last one is marked by the high of November 29th. If the stock continues to be attractive in the market even at that price, ATVI may push further towards the 56.88 resistance zone, marked by the high of November 9th, which also coincides with the 200 EMA.
Both of our oscillators, the RSI and the MACD, support the above-discussed idea. The RSI is over 50 and points higher. The MACD has just turned positive, is above its trigger line and points higher.
On the other hand, if suddenly the stock reverses back down and falls below the upper side of the aforementioned channel, this is when investors could start worrying again. A firm move below the 43.23 hurdle might totally spook the buyers, which could send ATVI even lower, potentially testing the support area between the 39.85 and 40.88 levels, marked by the lows of February 11th and March 8th respectively. If there are no takers even at those prices, the stock may continue drifting lower towards the 38.15 hurdle, marked by the high of December 12th.
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