Activision Getting Battered - It Could Get Worse Short

Activision Blizzard IncNASDAQ

Description

⋅ Dec 6, 2018 3:03 PM

Activision, especially subsidiary Blizzard make great games, so my son tells me. But their financials certainly are not to be played with.

Short-term Trend - Down
Medium-term Trend - Down
Long-Term Trend - Up

Price way below the Ichimoku Cloud
Stock Market Crash Detector Indicator - RED

If you are still holding onto ATVI it may be a year or two before you recoup the loss. You can, of course, invest more to dollar average the loss.

For those looking to get in, the risk reward is a potential drop of another 20% versus and upside of 60% to 80% over the next year to 18 months.

Let's be clear, ATVI has not formed a bottom so buying now as a medium-term investment is catching a falling knife.

Early signs are that their latest call of duty is a smash hit, but Christmas is around the corner we shall see.

So enough of the games, it may be just a little too early to play with Activision.

Stay safe

Comments

drwri

⋅ Dec 13, 2018 4:11 PM

Great read.

liberatedstocktrader

⋅ Dec 13, 2018 4:22 PM

@YoungGhost, thanks

Hope4Today9

⋅ Dec 10, 2018 4:52 PM

It's been reported that... "Activision Blizzard reported revenue of $7,017.00MM vs $6,608.00MM (up 6.19%) and analysts estimated basic earnings per share $0.36 vs $1.30 (down 72.31%). Analysts expect earnings to be released on February 14th, 2019."
It's also been reported that the year to year look Activision Blizzard ... "reported revenue of $1.51 billion, down from $1.62 billion in the prior year's quarter. Adjusted (non-GAAP) earnings per share came in at $0.42, down from $0.47 in the year-ago quarter."

If the analysts are correct then in my opinion unless Activision goes out and buys another CandyCrush company or the CEO steps down (as Jim Cramer put it "there something seriously wrong" there.) There not going to be a Bullish anything. While it's possible for this pull back is opportunistic backlash over a phone app that wasn't received well (So what, that doesn't lower the base…) The stocks problem was that it didn't bounce on support. Now it's getting close to 61% Fib point and below that there's a sloped line of support @ 33.68 (Dec 10) increasing just over a cent per day {potential for a long trade here}. Were it to pass (weekly close) under this line it's like to be a knock out punch.

I'm looking for a wick to penetrate this support and not close below it a bounce from here will send the stock in to a long bullish trade... (Here's hoping that the news about the base is nothing but a typo or someone will have to answer some tuff questions) And even with that this stock can't beat the tread of the S&P which is headed down... will it bounce off the bottom of the channel? Hope so

ATVI had formed what could have been a bottom 3 weeks ago (weekly chart) unfortunately that didn't hold.

Also I believe Cramer is trying to get Activision CEO to come on his show.
(So keep an eye out for that interview)