ATVI still stuck within tight trading range
Activision Blizzard Inc (ATVI) Technical Analysis Report for Jun 30, 2020 | by Techniquant Editorial Team
ATVI ended the month 5.45% higher at 75.90 after gaining $0.40 (0.53%) today, significantly underperforming the Nasdaq 100 (1.96%). Closing within the previous day's range, prices missed to decisively move beyond the prior day's trading range in a lackluster session.
Daily Candlestick Chart (ATVI as at Jun 30, 2020):
Tuesday's trading range has been $1.01 (1.33%), that's far below the last trading month's daily average range of $2.14. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for ATVI. Prices continued to consolidate within a tight trading range between 74.43 and 77.17 where it has been caught now for the whole last trading week.
During the whole day, prices traded within the previous day's range, unable to trade above the prior day's high or below the previous day's low forming an Inside Bar. Additionally, one bullish candlestick pattern matches today's price action, the Bullish Spinning Top. The last time a Bullish Spinning Top showed up on June 12th, ATVI gained 2.11% on the following trading day.
Prices are trading close to the key technical support level at 74.54 (S1). After having been unable to move above 76.52 in the prior session, the share ran into sellers again around the same price level today, failing to move higher than 76.43.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Buying could speed up should prices move above the nearby swing high at 76.84 where further buy stops might get triggered. Selling could accelerate should prices move below the close-by swing low at 74.43 where further sell stops might get activated.
Among the four market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Close to Swing Low" stand out. Though it is usually interpreted as neutral, it has actually shown to be bullish for Activision Blizzard. Out of 711 times, ATVI closed higher 54.71% 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 60.34% with an average market move of 1.21%.