ATVI breaks back below 50-day moving average
Activision Blizzard Inc (ATVI) Technical Analysis Report for Jun 14, 2019 | by Techniquant Editorial Team
ATVI ended the week 0.53% higher at 45.62 after losing $0.43 (-0.93%) today on low volume, underperforming the Nasdaq 100 (-0.42%). 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 Jun 14, 2019):
Friday's trading range has been $0.83 (1.81%), that's below the last trading month's daily average range of $1.18. Weekly volatility is also lower, being way below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for ATVI.
During the whole day, prices traded within the prior day's range, unable to trade above the previous day's high or below the prior day's low forming an Inside Bar. After moving higher in the previous session, the share closed lower but above the prior day's open today, forming a bearish Harami Candle. The last time this candlestick pattern showed up on June 6th, ATVI actually gained 2.95% on the following trading day.
Prices are trading close to the key technical support level at 44.87 (S1). Activision Blizzard closed back below the 50-day moving average at 45.78. The stock found buyers again today around 45.13 for the third trading day in a row after having found demand at 45.08 in the previous session and at 44.97 two days ago.
Although the market is experiencing a short-term uptrend, this might just be a correction, as both the medium and long-term trends are still bearish.
Selling could speed up should prices move below the nearby swing low at 44.97 where further sell stops might get triggered.
Among the seven market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Low close to prior two Lows" stand out. Its common bullish interpretation has been confirmed for Activision Blizzard. Out of 125 times, ATVI closed higher 52.80% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the long side has been after 10 trading days, showing a win rate of 60.80% with an average market move of 1.03%.