The technical picture of the Electronic Arts Inc. stock (NASDAQ: EA) on our daily chart shows that from around mid-January, the share price has been on a move lower, while trading below a short-term tentative downside resistance line taken from the high of January 18th. That said, in order to get a bit more comfortable with the downside, we would first prefer to wait for a break below the 128.89 zone, marked near the current lowest point of February.
If, eventually, that break happens, this will confirm a forthcoming lower low, potentially opening the door to some further declines. EA could then drift to the 127.48 obstacle, or to the 124.70 hurdle, marked near the lows of December 9th and 10th, where a temporary hold-up might occur. However, if there are no new buyers in sight, the stock may continue sliding, possibly aiming for the 120.15 level, marked by the lowest point of December.
The RSI and the MACD are both pointing lower. In addition to that, the RSI is now below 50 and the MACD had just pushed below zero, while continuing to run below the signal line. The two indicators show negative price momentum, which supports the above-mentioned scenario.
In order to shift our attention to some higher areas, we would prefer to wait for a violation of the aforementioned downside line and then for a push above the 135.45 barrier, marked by the high of February 15th. EA could then travel to the 139.54 obstacle, which is the current highest point of February. If that area fails to provide resistance and breaks, the next possible target to consider might be at 142.50, marked by the highest point of January.
Disclaimer:
The content we produce does not constitute investment advice or investment recommendation (should not be considered as such) and does not in any way constitute an invitation to acquire any financial instrument or product. The Group of Companies of JFD, its affiliates, agents, directors, officers or employees are not liable for any damages that may be caused by individual comments or statements by JFD analysts and assumes no liability with respect to the completeness and correctness of the content presented. The investor is solely responsible for the risk of his investment decisions. Accordingly, you should seek, if you consider appropriate, relevant independent professional advice on the investment considered. The analyses and comments presented do not include any consideration of your personal investment objectives, financial circumstances or needs. The content has not been prepared in accordance with the legal requirements for financial analyses and must therefore be viewed by the reader as marketing information. JFD prohibits the duplication or publication without explicit approval.
There are risks involved with trading of cash equities. Past performance is not indicative of future results. You should consider whether you can tolerate such losses before trading. Please read the full Risk Disclosure.
Copyright 2022 JFD Group Ltd.