Company Profile
Activision Blizzard is a company listed in the S&P 500 index and operating in the sector of Communication service, industry of Electronic gaming and Multimedia.
Signals
Position: Long
Target Price : $77
Entry Price: $68
Stop loss: $65
Indicators
MACD shows a strong bullish momentum
DMI shows the negative trend is not strong, ADX is at 22
The stock price is outside the lower band of the Keltner channel
RSI and STOCH are at overbought threshold
Analysis
The stock has experienced a dramatic gap three candlesticks ago, caused by the announcement of a delay in the game launches of 2022, that pushed the price below the lower bound of the Keltner channel. According to the RSI (30) and Stochastic indicator(20) the stock is oversold, so from these three indices we can expect the stock price to rise and reenter the Keltner channel to get closer to the moving average. If we design the most important simple moving averages we can observe that SMA 7<SMA 20 < SMA 50<SMA 100<SMA 200, meaning the stock is on a downtrend and so we discourage to take a position trade, but instead to keep the stock until the impulse phase makes it reach the previous support that could become resistance. From the DMI we can observe how the bearish momentum is becoming weaker (D- has negative slope) and the bullish momentum could start at any time, if the market recognizes the overreaction to the delay news.
No financial advice.
Activision Blizzard is a company listed in the S&P 500 index and operating in the sector of Communication service, industry of Electronic gaming and Multimedia.
Signals
Position: Long
Target Price : $77
Entry Price: $68
Stop loss: $65
Indicators
MACD shows a strong bullish momentum
DMI shows the negative trend is not strong, ADX is at 22
The stock price is outside the lower band of the Keltner channel
RSI and STOCH are at overbought threshold
Analysis
The stock has experienced a dramatic gap three candlesticks ago, caused by the announcement of a delay in the game launches of 2022, that pushed the price below the lower bound of the Keltner channel. According to the RSI (30) and Stochastic indicator(20) the stock is oversold, so from these three indices we can expect the stock price to rise and reenter the Keltner channel to get closer to the moving average. If we design the most important simple moving averages we can observe that SMA 7<SMA 20 < SMA 50<SMA 100<SMA 200, meaning the stock is on a downtrend and so we discourage to take a position trade, but instead to keep the stock until the impulse phase makes it reach the previous support that could become resistance. From the DMI we can observe how the bearish momentum is becoming weaker (D- has negative slope) and the bullish momentum could start at any time, if the market recognizes the overreaction to the delay news.
No financial advice.
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