EA closes within prior day's range
Electronic Arts Inc. (EA) Technical Analysis Report for Feb 13, 2019 | by Techniquant Editorial Team
EA ended Wednesday at 102.25 losing $0.08 (-0.08%), slightly underperforming the Nasdaq 100 (0.02%). Closing within the prior day's range, prices missed to decisively move beyond the previous day's trading range.
Daily Candlestick Chart (EA as at Feb 13, 2019):
Wednesday's trading range has been $4.56 (4.36%), that's slightly above the last trading month's daily average range of $4.19. Weekly volatility is also higher, being way above the market's average weekly trading range. The longer-term, monthly volatility is currently strongly higher than usual for EA.
During the whole day, prices traded within the prior day's range, unable to trade above the previous day's high or below the prior day's low forming an Inside Bar. Additionally, one bearish candlestick pattern matches today's price action, the Black Candle.
Prices are trading close to the key technical support level at 100.20 (S1). Prices are trading close to the key technical resistance level at 106.95 (R1).
With another close above the upper Bollinger Band, prices are confirming their strong upward momentum in the short-term. A drop back into the Bollinger Band on the next trading day although might signal a potential change in momentum that could lead to a correction back down towards the center of the Bollinger Bands at 91.52.
Though still in a long-term downtrend, the short and medium-term trends both turned bullish already.
Buying might accelerate should prices move above the close-by swing high at 106.95 where further buy stops could get activated.
Among the three market conditions that our pattern recognition engine identified today, the statistics for the Technical Indicators based market condition "Close above the upper Bollinger Band" stand out. Its common bullish interpretation has been confirmed for Electronic Arts. Out of 186 times, EA closed higher 56.99% 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 60.22% with an average market move of 0.76%.