EA closes below its opening price unable to hold early session gains
Electronic Arts Inc. (EA) Technical Analysis Report for Jun 01, 2020 | by Techniquant Editorial Team
EA finished Monday at 122.78 edging lower $0.10 (-0.08%) on low volume, underperforming the Nasdaq 100 (0.45%). Trading $0.98 higher after the open, the market was unable to hold its gains as the bears took control ending the day below its opening price. The last time this happened on May 13th, EA actually gained 0.19% on the following trading day. Closing within the previous day's range, prices missed to decisively move beyond the prior day's trading range in a lackluster session.
Daily Candlestick Chart (EA as at Jun 01, 2020):
Monday's trading range has been $1.89 (1.53%), that's far below the last trading month's daily average range of $3.48. Things look different on the weekly timeframe, where the market's trading range of the last week has been way above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for EA.
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 while could signal a potential change in momentum that might lead to a correction back down towards the center of the Bollinger Bands at 118.22.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
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 188 times, EA closed higher 55.85% 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 55.85% with an average market move of 0.24%.