Activision Blizzard, Inc. (ATVI) Chart Analysis
Activision is a component of the Nasdaq 100 index, and in a series of articles over the coming days and weeks featuring companies of the Nasdaq we will begin tonight with Activision (ATVI).
Activision is a maker of game software for PC’s, hand held game devices, and maintains some online gaming portals.
Activision’s reported earnings have not been meeting street expectations, and in their Q2 statement they cut their Q3 earnings expectations.
ATVI – most recent earnings reported November 5 2009:
Activision Blizzard Inc Reports Q3 $0.04 v $0.04e, R $704M v $724Me- Guides Q4 non-GAAP $0.43 v $0.44e, R $2.22B v $2.3Be
- Reaffirms FY09 non-GAAP EPS $0.63 v $0.64e, R $4.5B v $4.5Be (Reaffirmed FY09 EPS $0.63, Rev $4.5B on 9/21)
Now that is just some very brief fundamental tid bits for Activision, now for the chart.
Multi-year chart utilizing monthly closing prices. Activision is on my list of stocks to watch for initiating a short position. ATVI has successfully fallen below a 4 year long channel, has retested the channel and held, and is now trading just slightly below a brief double top formation underneath the channel.
I will initiate a small (no more than 2.5% of my trading capital due to the low share price) short in ATVI on one of the two following conditions being met.
1. ATVI trades back up to the underside of the channel (lower red line), but not above.
2. ATVI breaks below $10.65
My price target will be a retracement down to the $6.90 to $7.15 price level. If this trade is initiated, it will be a swing trade, not a day trade.
Activision ATVI Chart Analysis
Activision ATVI Chart Analysis 2
Thanks for showing this Chuck, its helping me understand how to think about shorting… you’re a great teacher!
Merry Christmas everyone….God Bless
Thanks Chuck, you just gave me a great idea! I am going Long…
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ANON,Chuck does not Advocate or encourage any Trades.He Does share his trades.
He desires that we learn to Think and Trade for ourselves and not to mindlessly follow the talking heads.That’s what being a Rebel is all about. Perhaps you missed that.
Exactly thats what i am doing. I am trading with my head and not following blindly. It is because i saw how the chart plays out that makes me want to go long. look at the weekly chart and i am drooling to go long.
Chuck said he sees more opportunity to go short than to go long for ATVI but i think the opposite of him. So at least i am a truly thinking rebel with a good techincal grounding. Let’s see if i am right. Merry Xmas, hohoho….