I previously explained the fundamentals on why EA is a strong BUY for a Swing-Trade. We could go back to the $130 level. Here we have a nice triple bottom pattern that could lead to a nice breakout - supported by the release of the new Battlefield game. If price doesn't break resistance, we could see a retest of the resistance - but it is unlikely.
I would like EA to jump back to 130 but unfortunately, it looks troubling because the thing that is influencing EA stock right now is their upcoming game Battlefield 5.
Long story short, Battlefield 5 was marketed poorly by EA and now a big part of the gaming market boycotts it even though *personally* I think it is a great game. To sum it up, I think that the launch of battlefield 5 will determine the direction of the stock.
BTW, I agree with your triple bottom theory but I think EA will jump to around 120, not 130 (no bounce back sadly).
Tutur
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@Offeck, Thank you for your comment! I agree that the outlook doesn’t look that good. Now that we hit the 120$ mark we’ll have to see how that goes. But the release of BF5 is definitely going to determine the direction of the stock.
I might lighten my postition is the near future. And keep some to try and play their earnings report. Not sure yet.
foreigner251
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I agree on its movement potential from that third bounce, and I have open call positions on this move. However, I am concerned with the stock past late October, and I plan to be out some time in the last 2 weeks of next month for several reasons. First is their earnings report on Oct. 30 that could send this stock in either direction. Even if this does not sink the stock, the release of Battlefield comes not long after, and the game thus far in Beta testing has had more negative feedback than positive (which is one factor among several that has led to its postponed release). The version of the game that will be released could very well be much better...and it very well may not. With the loss of their Chief Design Officer that caused the first drop, the company's ability to debug and update the game as needed for a great November release is completely unknown. Also, negative sentiment from the beta testing might have a negative effect on early sales, which may have a negative effect on price action.
I am not a big fundamentals/news trading guy, but I think the news surrounding EA for late October and November are substantial to this potential price action. I'm looking at it making a short-term swing into the upper $120's or hopefully the $130's as you said, but I will be covering profits or cutting losses regardless once that last week of October arrives.
Good luck in your trade and thanks for sharing!
Tutur
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@foreigner251, Thank you so much for your comment! I totally agree, now that we’re in the 120’s (8% return already :D) the performance will be conditionned by news and Battlefield 5 sales
Long story short, Battlefield 5 was marketed poorly by EA and now a big part of the gaming market boycotts it even though *personally* I think it is a great game. To sum it up, I think that the launch of battlefield 5 will determine the direction of the stock.
BTW, I agree with your triple bottom theory but I think EA will jump to around 120, not 130 (no bounce back sadly).