ATVI breaks back below 20-day moving average
Activision Blizzard Inc (ATVI) Technical Analysis Report for Jan 24, 2020 | by Techniquant Editorial Team
Moving lower for the 3rd day in a row, ATVI ended the week -3.0% lower at 59.40 after losing $0.73 (-1.21%) today, slightly underperforming the Nasdaq 100 (-0.82%). Closing below Thursday's low at 60.06, the share confirmed its breakout through the prior session low after trading up to $1.11 below it intraday.
Daily Candlestick Chart (ATVI as at Jan 24, 2020):
Friday's trading range has been $1.38 (2.29%), that's above the last trading month's daily average range of $1.08. Weekly volatility is also higher, being above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for ATVI.
One bearish candlestick pattern matches today's price action, the Black Candle.
Prices are trading close to the key technical support level at 58.62 (S1). The stock closed back below the 20-day moving average at 59.69 for the first time since January 10th. When this moving average was crossed below the last time on January 10th, ATVI actually gained 0.49% on the following trading day.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Selling might speed up should prices move below the close-by swing low at 58.73 where further sell stops could get triggered. With prices trading close to this year's low at 57.65, downside momentum might accelerate should Activision Blizzard break out to new lows for the year.
Among the six market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bearish Break through SMA 20" stand out. Although it is usually interpreted as bearish, it has actually shown to be bullish for Activision Blizzard. Out of 154 times, ATVI closed higher 58.44% 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 66.88% with an average market move of 1.91%.