ATVI finds buyers again around 72.20
Activision Blizzard Inc (ATVI) Technical Analysis Report for May 22, 2020 | by Techniquant Editorial Team
ATVI finished the week -1.14% lower at 73.08 after gaining $0.61 (0.84%) today, slightly outperforming the Nasdaq 100 (0.38%) ahead of tomorrow's Memorial Day market holiday. Trading up to $0.81 lower after the open, the market managed to reverse during the session as bulls took control ending the day above its opening price. 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 May 22, 2020):
Friday's trading range has been $0.96 (1.31%), that's far below the last trading month's daily average range of $2.31. Weekly volatility is also lower, being way below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for ATVI.
After moving lower in the prior session, the share managed to close higher but below the previous day's open, forming a bullish Harami Candle. Additionally, two candlestick patterns are matching today's price action, the Bullish Spinning Top and the Takuri Line which are both known as bullish patterns. The last time a Bullish Spinning Top showed up on Wednesday, ATVI actually lost -1.78% on the following trading day.
After having been unable to move lower than 72.44 in the prior session, the stock found buyers again around the same price level today at 72.20.
Though Activision Blizzard is currently in a short-term downtrend, this might just be a correction, as both the medium and long-term trends are still bullish.
Buying could accelerate should prices move above the nearby swing high at 74.54 where further buy stops might get activated. Selling could speed up should prices move below the close-by swing low at 71.61 where further sell stops might get triggered. With prices trading close to this year's high at 75.97, upside momentum could accelerate should ATVI be able to break out to new highs for the year.
Among the nine market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Takuri Line" stand out. Its common bullish interpretation has been confirmed for Activision Blizzard. Out of 48 times, ATVI closed higher 66.67% 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 64.58% with an average market move of 3.01%.