ATVI pushes through Wednesday's high
Activision Blizzard Inc (ATVI) Technical Analysis Report for Mar 26, 2020 | by Techniquant Editorial Team
ATVI ended Thursday at 57.72 surging $4.85 (9.17%), significantly outperforming the Nasdaq 100 (5.72%). This is the biggest single-day gain in over a year. The bulls were in full control today, moving the market higher throughout the whole session. Closing above Wednesday's high at 55.71, the stock confirmed its breakout through the previous session high after trading up to $2.07 above it intraday.
Daily Candlestick Chart (ATVI as at Mar 26, 2020):
Thursday's trading range has been $4.72 (8.9%), that's slightly above the last trading month's daily average range of $4.12. Weekly volatility is also higher, being above 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 Bullish Belt-hold and the White Candle which are both known as bullish patterns.
The market managed to close back above the 200-day moving average at 54.19. Prices are trading close to the key technical resistance level at 58.52 (R1). After having been unable to move lower than 52.52 in the prior session, Activision Blizzard found buyers again around the same price level today at 53.06. The last time this happened on March 16th, ATVI gained 6.44% on the following trading day.
The share shows strength in the short-term supported by its long-term uptrend with only the medium-term trend being bearish.
Buying might speed up should prices move above the nearby swing high at 61.25 where further buy stops could get activated. With prices trading close to this year's high at 64.53, upside momentum might accelerate should ATVI be able to break out to new highs for the year. As prices are trading close to March's high at 62.59, upside momentum could speed up should the stock mark new highs for the month.
Among the 12 market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bullish Belt-hold" stand out. Its common bullish interpretation has been confirmed for Activision Blizzard. Out of 6 times, ATVI closed higher 83.33% 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 66.67% with an average market move of 0.52%.