EA rises to highest close since July 26, 2018
Electronic Arts Inc. (EA) Technical Analysis Report for Jul 31, 2020 | by Techniquant Editorial Team
Moving higher for the 3rd day in a row, EA ended the month 7.25% higher at 141.62 after gaining $3.03 (2.19%) today on high volume, slightly outperforming the Nasdaq 100 (1.78%) following Thursday's earnings report. Today's close at 141.62 marks the highest recorded closing price since July 26, 2018. Ending the day with an indecisive close, neither buyers nor sellers were able to gain control during the session.
Daily Candlestick Chart (EA as at Jul 31, 2020):
EA reported earnings of $1.36 per share after Thursday's market close. With analysts having expected an EPS of $0.81, Electronic Arts Inc. beat market expectations by 67.9%. The company's last earnings report was released on May 5, 2020, when Electronic Arts Inc. reported earnings of $1.34 per share beating market expectations by 38.1%.
Friday's trading range has been $5.74 (4.04%), that's far above the last trading month's daily average range of $3.39. Weekly volatility is also higher, being slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently lower than usual for EA.
Two candlestick patterns are matching today's price action, the Bearish Spinning Top and the Hanging Man which are both known as bearish patterns. The last time a Bearish Spinning Top showed up on July 8th, EA actually gained 2.33% on the following trading day.
After trading down to 137.10 earlier during the day, the stock bounced off the key technical support level at 138.98 (S1). The failure to close below the support could increase that levels importance as support going forward.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Among the seven market conditions that our pattern recognition engine identified today, the statistics for the Stock Earning Report based market condition "Trading Day post Earnings Report" stand out. Though it is usually interpreted as neutral, it has actually shown to be bullish for Electronic Arts. Out of 31 times, EA closed higher 58.06% 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 58.06% with an average market move of 3.82%.