EA breaks above 100-day moving average for the first time since July 27, 2018
Electronic Arts Inc. (EA) Technical Analysis Report for Feb 08, 2019 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, EA ended the week 6.99% higher at 97.60 after surging $13.50 (16.05%) today on high volume, significantly outperforming the Nasdaq 100 (0.12%). This is the biggest single-day gain ever recorded for the share. The last time we've seen such an unusually strong single-day gain on Tuesday, EA actually lost -13.31% on the following trading day. Today's close at 97.60 marks the highest recorded closing price since October 25, 2018. The bulls were in full control today, moving the market higher throughout the whole session. Ending with a strong close near the high of the day sets a bullish note for the next session.
Daily Candlestick Chart (EA as at Feb 08, 2019):
Friday's trading range has been $12.65 (14.62%), that's far above the last trading month's daily average range of $3.29. Weekly volatility is also higher, being way above the market's average weekly trading range. The longer-term, monthly volatility is currently higher than usual for EA.
One bullish candlestick pattern matches today's price action, the White Candle.
The stock managed to close above the 100-day moving average at 93.33 for the first time since July 27, 2018. Prices are trading close to the key technical resistance level at 100.20 (R1).
Crossing above the upper Bollinger Band for the first time since January 10th, 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 89.87 or signal the beginning of a strong momentum breakout leading to even higher prices.
While still in a long-term downtrend, the short and medium-term trends both turned bullish already.
Among the 14 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. Its common bullish interpretation has been confirmed for Electronic Arts. Out of 85 times, EA closed higher 67.06% 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 56.47% with an average market move of 0.43%.