ATVI dominated by bulls lifting the market higher throughout the day
Activision Blizzard Inc (ATVI) Technical Analysis Report for Feb 14, 2020 | by Techniquant Editorial Team
ATVI ended the week 3.23% higher at 63.52 after gaining $0.93 (1.49%) today on low volume, notably outperforming the Nasdaq 100 (0.29%) ahead of tomorrow's Presidents' Day market holiday. Today's close at 63.52 marks the highest recorded closing price since November 7, 2018. The bulls were in full control today, moving the market higher throughout the whole session. Closing above Thursday's high at 62.94, the share confirmed its breakout through the previous session high after trading up to $0.60 above it intraday.
Daily Candlestick Chart (ATVI as at Feb 14, 2020):
Friday's trading range has been $1.23 (1.96%), that's slightly below the last trading month's daily average range of $1.32. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for ATVI.
Two candlestick patterns are matching today's price action, the White Candle which is known as bullish pattern and one bearish pattern, the Bearish Hikkake Pattern. The last time a Bearish Hikkake Pattern showed up on January 14th, ATVI lost -0.68% on the following trading day.
Buyers managed to take out the key technical resistance level at 62.84 (now S1), which is likely to act as support going forward.
Crossing above the upper Bollinger Band for the first time since Wednesday, prices have shown unusually strong upward momentum in the short-term. This might either indicate a potential buying climax after which prices could head back down towards the mean of the Bollinger Bands at 60.52 or signal the beginning of a strong momentum breakout leading to even higher prices.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Among the 11 market conditions that our pattern recognition engine identified today, the statistics for the Technical Indicators based market condition "Close crossed above the upper Bollinger Band" stand out. Although it is usually interpreted as bullish, it has actually shown to be bearish for Activision Blizzard. Out of 86 times, ATVI closed lower 56.98% 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 10 trading days, showing a win rate of 54.65% with an average market move of -0.35%.