Short video games post earnings
Using TradingView's advanced charting abilities, I created a composite of TTWO , EA , and ATVI which is indexed to 30,000. The sector had been in a strong, tight uptrend dating back to 2012 before breaking through support as well as the 200-day moving average last October. Despite today's strong performance, we can see that the composite is still trading below the moving average and is contained within a contracting range. I believe the ongoing sideways price action is a Wave 4 triangle within an impulsive sequence off the high. Look for the sector to stall in coming weeks and break lower in Wave 5 - a move which should net at least 10% to the downside. Initiating short positions on TTWO , EA , and ATVI as long as the composite stays below the 200-day moving average.