From around mid-February, the Electronic Arts Inc. stock (NASDAQ: EA) continues to move sideways, but with a slight tilt to the downside. After hitting its all-time high in July last year, at around the 151.00 mark, the stock sold off heavily, reaching the low for that year, at 73.90, and ending 2018 in the red. This year, the stock is showing slightly better results, as it is still above the 2019 opening price, at 77.27. That said, as long as the price action is maintained within the falling channel, we will stay somewhat bearish, at least in the near term.
Even if EA moves slightly higher, but fails to break above the upper bound of the aforementioned channel, this could result in another slide, possibly bringing the stock to the 91.55 hurdle, marked by the low of August 28th. If there are still no takers of EA at that price, this could force it to move below the 91.55 area and aim for the next key support zone, at 87.18. That zone kept the stock from moving lower between July 19th and August 15th. Slightly lower runs the lower bound of the channel, which could also get a quick test, in case the 87.18 fails to withhold.
Our oscillators, the RSI and the MACD, are somewhat mixed. Although the RSI has moved below 50, it is currently pointing to the upside. The MACD has topped recently and moved to its zero mark, where it is currently sat at, while floating below its trigger line and pointing slightly to the downside. Each indicators is currently providing a different picture, so that’s why we will not put too much emphasis on them.
Alternatively, if the upper bound of the channel breaks and the price climbs above the 101.70 barrier, marked by the high of September 12th, this could attract new buyers into the game and we could see EA rising to the 108.70 hurdle, marked by the high of February 15th. Initially, the stock may receive a hold-up around there, but if the buying interest is still in full swing, a break of that hurdle might lead the price to the 116.40 level. That level marks the high of September 14th, 2018. Just a few dollars higher sits another possible resistance area, at 120.75, which is the high of September 28th, 2018.
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