EA dominated by bulls lifting the market higher throughout the day
Electronic Arts Inc. (EA) Technical Analysis Report for Feb 14, 2020 | by Techniquant Editorial Team
EA finished the week 0.55% higher at 109.69 after gaining $0.85 (0.78%) today on low volume, slightly outperforming the Nasdaq 100 (0.29%) ahead of tomorrow's Presidents' Day market holiday. The bulls were in full control today, moving the market higher throughout the whole session. Closing above Thursday's high at 109.34, the stock confirmed its breakout through the previous session high after trading up to $0.55 above it intraday.
Daily Candlestick Chart (EA as at Feb 14, 2020):
Friday's trading range has been $1.14 (1.05%), that's below the last trading month's daily average range of $1.98. 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 EA. Prices continued to consolidate within a tight trading range between 107.94 and 109.98 where it has been caught now for the whole last trading week.
One bullish candlestick pattern matches today's price action, the White Candle. The last time a White Candle showed up on February 6th, EA actually lost -0.83% on the following trading day.
Prices are trading close to the key technical resistance level at 110.96 (R1).
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 109.98 where further buy stops might get activated. Selling could accelerate should prices move below the close-by swing low at 107.97 where further sell stops might get triggered.
Among the seven market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Close to Swing High" stand out. Though it is usually interpreted as neutral, it has actually shown to be bullish for Electronic Arts. Out of 781 times, EA closed higher 53.27% 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 57.49% with an average market move of 0.76%.