We are now in one of the busiest periods for retailers, as consumers are in an active shopping spree, which could last for the whole month. Certainly, due to the pandemic, some shoppers are avoiding their usual visits to stores. However, online retailers and those traditional stores, which have the option to deliver to people’s homes, could see an increase in their sales this month. Will those sales be able to beat the previous year’s figures? Well, we will just have to wait and see, but due to the unusual global health situation and the fact that some industries are laying off workers, there is a chance that the numbers might be on the modest side. That said, one industry, which might benefit from this holiday period, could be the video gaming one, as people are forced to remain indoors. One of the benefiting companies could be Electronic Arts Inc. (NASDAQ: EA). Although huge gains are not expected, still, it might end up being a relatively good month for video games makers.
Looking at the technical picture of EA, we can see that yesterday, the stock broke above its medium-term tentative downside resistance line drawn from the high of August 26th. At the same time, the stock continues to balance above a short-term tentative upside line taken from the low of November 9th. Although the current indication of the next potential move is for the upside, we would still prefer to wait for a break above the 128.69 barrier, marked by the highest point of November.
If the pop above that 128.69 hurdle occurs, this may help attract more buyers into the game, potentially opening the door to larger extensions higher. That’s when the stock might travel to the 134.00 zone, which is the highest point of October. Initially, the share price could get held around there, but if the buying-power is still strong, the next possible target might be at 144.50. That area marks the high of August 26th.
The RSI is still pointing higher, while balancing above 50, which indicates increasing upside price momentum. The MACD, although fractionally below zero, sits above its trigger line and continues to point higher. The two oscillators seem to be somewhat in support of the of the above-mentioned scenario.
Alternatively, if the share price declines rapidly, breaks the aforementioned upside line and then also slides below the 119.78 hurdle, marked by the low of November 24th, that could spook new buyers from entering any time soon. Such a move may increase the stock’s chances of drifting further south, where the next target might be at 116.66, or even at 110.21, marked by the lowest point of November.
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