EA dominated by bulls lifting the market higher throughout the day
Electronic Arts Inc. (EA) Technical Analysis Report for Mar 26, 2020 | by Techniquant Editorial Team
EA ended Thursday at 99.20 surging $9.56 (10.66%), notably outperforming the Nasdaq 100 (5.72%). This is the biggest single-day gain in over a year. The bulls were in full control today, moving the market higher throughout the whole session. Closing above Wednesday's high at 94.15, the share confirmed its breakout through the previous session high after trading up to $5.42 above it intraday.
Daily Candlestick Chart (EA as at Mar 26, 2020):
Thursday's trading range has been $9.48 (10.48%), that's above the last trading month's daily average range of $6.84. Weekly volatility is also higher, being above the market's average weekly trading range. The longer-term, monthly volatility is currently significantly higher than usual for EA.
One bullish candlestick pattern matches today's price action, the White Candle.
The market managed to close back above the 200-day moving average at 99.18 for the first time since March 11th. Prices are trading close to the key technical resistance level at 102.39 (R1). The stock found buyers again today around 90.09 for the third trading day in a row after having found demand at 89.46 in the prior session and at 90.81 two days ago. The last time this happened on March 20th, EA gained 9.81% on the following trading day.
Electronic Arts shows strength in the short-term supported by its long-term uptrend with only the medium-term trend being bearish.
Buying might speed up should prices move above the nearby swing high at 103.10 where further buy stops could get activated.
Among the 13 market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bullish Break through SMA 200" stand out. Its common bullish interpretation has been confirmed for Electronic Arts. Out of 25 times, EA closed higher 60.00% 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 seven trading days, showing a win rate of 60.00% with an average market move of 0.56%.