Momentum pickup after healthy consolidation.
FUNDAMENTALLY SOLID
- A global leader in its sector
- Sector with significant growth potential: Gaming
- Consensus very bullish with a BUY recommendation
- Average target upside of 30%
- Has consolidated some 20% since the historical high
- Consolidation partially due to earnings disappointment
- Market likely to have since revised estimates down
- Positive earnings surprise to come?
TECHNICALLY RECOVERING
- Long term uptrend still in place
- Short term positive since rebound at 35
- Recent volume pickup on the upside
- Triangle consolidation formation currently in place
PLAIN VANILLA LONG
- Look for a breakout of the triangle at 37.5/38.0 for strength confirmation
- Play long earnings exposure (Feb 9)
- Up levels: 37.50 / 39.00 / 40.00 / 41.00
- Down levels: 36.80 / 36.00 / 35.00 / 33.50
- Buy here, target 45, stop loss 35, RR +3.23x
- A global leader in its sector
- Sector with significant growth potential: Gaming
- Consensus very bullish with a BUY recommendation
- Average target upside of 30%
- Has consolidated some 20% since the historical high
- Consolidation partially due to earnings disappointment
- Market likely to have since revised estimates down
- Positive earnings surprise to come?
TECHNICALLY RECOVERING
- Long term uptrend still in place
- Short term positive since rebound at 35
- Recent volume pickup on the upside
- Triangle consolidation formation currently in place
PLAIN VANILLA LONG
- Look for a breakout of the triangle at 37.5/38.0 for strength confirmation
- Play long earnings exposure (Feb 9)
- Up levels: 37.50 / 39.00 / 40.00 / 41.00
- Down levels: 36.80 / 36.00 / 35.00 / 33.50
- Buy here, target 45, stop loss 35, RR +3.23x
Comment:
Breakout confirmed with a close yesterday above 39 in good volume. STAY LONG.
Comment:
ATVI now positive on most time frames. Broke yesterday out of the key 40 level in above average volume. Now approaching overbought levels on the shorter time frame, as it closed just below the main 100MA resistance at 40.42. Mind the double breakout and the golden cross on the chart below - All technically positive. Stay long into earnings. Move stop-loss to 38 so the trade becomes in the money.
Comment:
This is the second consecutive up day with above-average volume. This comes as a further confirmation of the positive momentum. Yesterday also graced shareholders with a close above the 100MA and a positive hammer candlestick. All this reinforces our positive view of the stock, notwithstanding the current overbought condition (RSI >70 on the daily chart). HOLD into earnings but do not put new money at play here.
Trade closed: target reached:
Target reached, and upside potentially compromised if the market continues to correct. This is a time to take/protect profits. If the market correction is a false alert and reverses, there will be time to go back into the stock as it breaks and closes above 50.
Comment:
This trade will have generated 29% since inception.