Background:
Electronic Art is in Technology Sector under Multimedia & Graphic Software Industry and it's direct competitors of similar size in the industry is Activision Blizzard In (ATVI).
Both are components of S&P 500 and the Electronic Art appear to be the weaker of the 2 as can be seem from the ATVI and EA/ATVI Ratio charts below.
Our Big Picture analysis of broader market and S&P500 suggest that they appear to have topped and the rally from Feb 2016 low is a retracement rally also close to completion (see linked chart below).
Summary of technicals:
1. On monthly chart we can observe that it might form double top with 2005 high and is about the breach the rising trendline from 2012 low and;
2. It is forming lower high in the Relative Strength chart Vs S&P 500 and MACD has already turned down bearishly.
3. On Daily, below both the 20 & 50 MA and;
4. both the RSI and MACD are suggesting bearish move accompanied with backing off from declining trendline on the price.
5. The Earnings Announcement is scheduled for 3rd April 2016.
6. There has been significant selling from the Insiders over the course of last 12 months from price range of $60 all the way to recent top at $75, adding to our bearish analysis. Source: finviz.com/quote.ashx?t=EA&t...
Conclusion: With weakness in the broader market and EA's Relative Weakness with bearish price action suggest we could decline to $50 as initial target which if gives way then in due course could head towards eventual target £30 or lower.
Action:
As at 8th April before the market open the price is at $63.93. Consider Jan 2017 PUT options with Strike price of $35 being quoted as $0.38 - $0.44.
A drop to $60 would double our money. If we reach initial target of $50 would give us approx 300% return.
Warning: This is my interpretation of price action using TA approach that I consider helps me the most but could be completely wrong. Therefore as always, please do your own analysis for your trade and risk management. You should follow this on Paper Trading Account till you feel confident to apply the skill to a live account.
DanV
danv-charting.com
Electronic Art is in Technology Sector under Multimedia & Graphic Software Industry and it's direct competitors of similar size in the industry is Activision Blizzard In (ATVI).
Both are components of S&P 500 and the Electronic Art appear to be the weaker of the 2 as can be seem from the ATVI and EA/ATVI Ratio charts below.
Our Big Picture analysis of broader market and S&P500 suggest that they appear to have topped and the rally from Feb 2016 low is a retracement rally also close to completion (see linked chart below).
Summary of technicals:
1. On monthly chart we can observe that it might form double top with 2005 high and is about the breach the rising trendline from 2012 low and;
2. It is forming lower high in the Relative Strength chart Vs S&P 500 and MACD has already turned down bearishly.
3. On Daily, below both the 20 & 50 MA and;
4. both the RSI and MACD are suggesting bearish move accompanied with backing off from declining trendline on the price.
5. The Earnings Announcement is scheduled for 3rd April 2016.
6. There has been significant selling from the Insiders over the course of last 12 months from price range of $60 all the way to recent top at $75, adding to our bearish analysis. Source: finviz.com/quote.ashx?t=EA&t...
Conclusion: With weakness in the broader market and EA's Relative Weakness with bearish price action suggest we could decline to $50 as initial target which if gives way then in due course could head towards eventual target £30 or lower.
Action:
As at 8th April before the market open the price is at $63.93. Consider Jan 2017 PUT options with Strike price of $35 being quoted as $0.38 - $0.44.
A drop to $60 would double our money. If we reach initial target of $50 would give us approx 300% return.
Warning: This is my interpretation of price action using TA approach that I consider helps me the most but could be completely wrong. Therefore as always, please do your own analysis for your trade and risk management. You should follow this on Paper Trading Account till you feel confident to apply the skill to a live account.
DanV
danv-charting.com
