EA still stuck within tight trading range
Electronic Arts Inc. (EA) Technical Analysis Report for Jun 30, 2020 | by Techniquant Editorial Team
EA ended the month 7.46% higher at 132.05 after gaining $1.36 (1.04%) today on low volume, underperforming the Nasdaq 100 (1.96%). Today's close at 132.05 marks the highest recorded closing price since July 27, 2018. 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 30, 2020):
Tuesday's trading range has been $1.91 (1.44%), that's far below the last trading month's daily average range of $3.56. 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 128.09 and 132.61 where it has been caught now for the whole last trading week.
After having been unable to move above 132.37 in the previous session, Electronic Arts ran into sellers again around the same price level today, missing to move higher than 132.61. The last time this happened on June 25th, EA actually gained 0.15% on the following trading day.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Among the two market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "High close to prior High" stand out. Although it is usually interpreted as bearish, it has actually shown to be bullish for Electronic Arts. Out of 586 times, EA closed higher 52.22% 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 59.04% with an average market move of 1.14%.