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- 1 EA stock broke out of the consolidation phase and escaped the neckline of $130.
- 2 Bulls are accumulating the stock and preparing for an upcoming battle.
Electronic Arts (NASDAQ: EA) stock price exhibited a rounding bottom pattern, indicating a recovery from the bottom around $108 and subsequent gains. Furthermore, EA stock trades beyond the significant moving averages, revealing optimistic sentiments.
The chart shows that the price departed from the narrow range consolidation phase and broke the neckline of $130, indicating the objective to expand bullishness.
Additionally, there is a significant resistance level at $135, which has proven to be a strong barrier for buyers, as they have been unable to surpass it despite multiple attempts.Bulls are currently gaining strength and building momentum to overcome the immediate hurdle. There has been notable long buildup activity observed from buyers, indicating a positive sentiment and potential upward movement in the stock.
Electronic Arts, Inc. develops, markets, publishes, and distributes games, content, and services for game consoles, PCs, mobile phones, and tablets. The company develops and publishes games and services across various genres such as sports, first-person shooter, action, role-playing, and simulation. The company is known for its popular franchises such as Battlefield, The Sims, Apex Legends, Anthem, Need for Speed, and Plants v. Zombies. In addition to its original brands, EA also releases licensed games based on well-known franchises such as FIFA, Madden NFL, and Star Wars.
The firm also provides advertising services and licenses its games to third parties to distribute and host them. It markets and sells its games and services through digital distribution channels and retail channels, such as mass-market retailers, electronics specialty stores, and game software specialty stores.
At press time, EA stock was trading at $130.87 with an intraday gain of 0.90%, showing buyers’ attachment in the last trading session. Moreover, the intraday trading volume was 896.928K, and the market cap was $35.612 Billion.
Will EA Stock Reach $135 this week?
On the daily charts, EA stock stayed on the top near the supply range of $135, where bulls faced rejection multiple times from but could not surpass it. Furthermore, the chart structure showed roller coaster moves in the past months, where the price recently fell near $108.
However, as per the stock’s past performance, the stock remained in a range and has experienced a period of consolidation without significant movement over the past couple of months. It has stayed in a congestion zone, indicating a lack of clear direction or trend in the stock price.
Short Term Chart Shows Fresh Beginning of Bullishness
On the short-term charts, EA stock escaped above the neckline of the consolidation phase, where it spent more than ten trading sessions and finally left the zone.
Subsequently, it retested the 20-day EMA and was ready to go in an uptrend. Furthermore, the leading indicators suggest an upside trajectory of $135 to be retested, and if it escapes the range, it will lead to a massive rally in the stock.
The relative strength index (RSI) curve is floating in the overbought zone near 60 but does not favor the bulls because of the negative crossover in the last trading session.
Additionally, the MACD indicator is showing the formation of red bars, suggesting a volatile move and indicating a bearish crossover on the charts.
Conclusion:
Electronic Arts (EA Stock) stayed in the bullish territory and escaped above the neckline of $130, suggesting a bullish move in the upcoming trading sessions.
Technical Levels:
Support Levels: $124
Resistance Levels: $135 and $140
Disclaimer
The views and opinions stated by the author, or any people named in this article, are for informational purposes only and do not establish financial, investment, or other advice. Investing in or trading crypto assets comes with a risk of financial loss.
Andrew is a blockchain developer who developed his interest in cryptocurrencies while pursuing his post-graduation major in blockchain development. He is a keen observer of details and shares his passion for writing, along with coding. His backend knowledge about blockchain helps him give a unique perspective to his writing skills, and a reliable craft at explaining the concepts such as blockchain programming, languages and token minting. He also frequently shares technical details and performance indicators of ICOs and IDOs.
