ATVI closes higher for the 3rd day in a row
Activision Blizzard Inc (ATVI) Technical Analysis Report for Jul 31, 2020 | by Techniquant Editorial Team
Moving higher for the 3rd day in a row, ATVI finished the month 8.87% higher at 82.63 after gaining $0.93 (1.14%) today on high volume, underperforming the Nasdaq 100 (1.78%). Today's close at 82.63 marks the highest recorded closing price since October 3, 2018. Trading $0.64 higher after the open, the stock was unable to hold its gains as the bears took control ending the day below its opening price. Ending the day with an indecisive close, neither buyers nor sellers were able to gain control during the session.
Daily Candlestick Chart (ATVI as at Jul 31, 2020):
Friday's trading range has been $1.69 (2.04%), that's slightly below the last trading month's daily average range of $2.07. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently lower than usual for ATVI.
Two candlestick patterns are matching today's price action, the Bearish Spinning Top and the Bearish High-Wave Candle which are both known as bearish patterns. The last time a Bearish High-Wave Candle showed up on March 12th, ATVI actually gained 8.21% on the following trading day.
After trading down to 81.76 earlier during the day, the share bounced off the key technical support level at 81.83 (S1). The failure to close below the support could increase that levels importance as support going forward.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Trading close to 2018's high at 84.68 we might see further upside momentum if potential buy stops at the level get activated.
Among the seven market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bearish High-Wave Candle" stand out. Though it is usually interpreted as bearish, it has actually shown to be bullish for Activision Blizzard. Out of 24 times, ATVI closed higher 54.17% 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 62.50% with an average market move of 0.86%.