ATVI closes higher for the 5th day in a row
Activision Blizzard Inc (ATVI) Technical Analysis Report for Jan 10, 2019 | by Techniquant Editorial Team
Moving higher for the 5th day in a row, ATVI finished Thursday at 51.35 gaining $0.52 (1.02%), outperforming the Nasdaq 100 (0.31%). Today's close at 51.35 marks the highest recorded closing price since November 29, 2018. Closing within the prior day's range, prices failed to decisively move beyond the previous day's trading range in a lackluster session.
Daily Candlestick Chart (ATVI as at Jan 10, 2019):
Thursday's trading range has been $1.40 (2.77%), that's below the last trading month's daily average range of $1.90. Things look different on the weekly timeframe, where the market's trading range of the last week has been above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for ATVI.
Two candlestick patterns are matching today's price action, the Bullish Short Candle and the White Candle which are both known as bullish patterns. The last time a White Candle showed up on Monday, ATVI gained 3.03% on the following trading day.
After having been unable to move lower than 49.91 in the prior session, the market found buyers again around the same price level today at 50.09.
With another close above the upper Bollinger Band, prices are confirming their strong upward momentum in the short-term. A drop back into the Bollinger Band on the next trading day although might signal a potential change in momentum that could lead to a correction back down towards the center of the Bollinger Bands at 47.47.
Though Activision Blizzard is experiencing a short-term uptrend, this might just be a correction, as both the medium and long-term trends are still bearish.
Among the eight market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bullish Short Candle" stand out. While it is usually interpreted as bullish, it has actually shown to be bearish for Activision Blizzard. Out of 57 times, ATVI closed lower 57.89% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the short side has been after three trading days, showing a win rate of 63.16% with an average market move of -0.16%.