Hello,
Today we're looking at $ATVI and we'll discuss some thoughts on where it could be going in the next few days. About 9 months ago, on 3/09, $ATVI was trading at $30.07. Fast forward to October and the stock was at $45.55. If you managed to catch that, then kudos to you. If not, then fret not because there might still be some opportunity. I used a retracement from these days mentioned above and found that the stock broke through the 61.8% retracement at the beginning of this month, teetered there for a couple days, and today closed above that line at $36.70. For those that aren't too familiar with retracements, the theory is that this specific line, the 61.8% line, is the last line of defense when determining if a stock's upward trend will continue. The theory goes, if the stock hits the line and bounces up to create new higher lows, then the trend will continue moving. If the stock falls below the line and creates lower highs then the trend is over and a downward trend can be begin. There is a lot of theory behind it but basically retracements are "pullbacks" where traders take profits. Today, the stock created a higher low since hitting the line on 12/01.
However, if you look left, you'll see that on 11/23, the stock came very close to hitting the 61.8% line before bouncing back only to fall through again a couple days later. Interesting right? If you look at the 31 SMA and 15 EMA, the trend is aiming to be a downward trend as well since the SMA crossed over the EMA.
Yet, there is still hope. $ATVI's RSI is showing the stock as nearly 'Oversold' and the MACD is well below 0 with a slight upward curve. Could the stock be getting ready for some green bars in our near future and if so, how long might they last? Well, I can't give you a clear answer but I can tell you that i'll be in at $36.95 with a stop loss slightly beneath the 61.8% line.
Best Wishes
Today we're looking at $ATVI and we'll discuss some thoughts on where it could be going in the next few days. About 9 months ago, on 3/09, $ATVI was trading at $30.07. Fast forward to October and the stock was at $45.55. If you managed to catch that, then kudos to you. If not, then fret not because there might still be some opportunity. I used a retracement from these days mentioned above and found that the stock broke through the 61.8% retracement at the beginning of this month, teetered there for a couple days, and today closed above that line at $36.70. For those that aren't too familiar with retracements, the theory is that this specific line, the 61.8% line, is the last line of defense when determining if a stock's upward trend will continue. The theory goes, if the stock hits the line and bounces up to create new higher lows, then the trend will continue moving. If the stock falls below the line and creates lower highs then the trend is over and a downward trend can be begin. There is a lot of theory behind it but basically retracements are "pullbacks" where traders take profits. Today, the stock created a higher low since hitting the line on 12/01.
However, if you look left, you'll see that on 11/23, the stock came very close to hitting the 61.8% line before bouncing back only to fall through again a couple days later. Interesting right? If you look at the 31 SMA and 15 EMA, the trend is aiming to be a downward trend as well since the SMA crossed over the EMA.
Yet, there is still hope. $ATVI's RSI is showing the stock as nearly 'Oversold' and the MACD is well below 0 with a slight upward curve. Could the stock be getting ready for some green bars in our near future and if so, how long might they last? Well, I can't give you a clear answer but I can tell you that i'll be in at $36.95 with a stop loss slightly beneath the 61.8% line.
Best Wishes