Daily Stock Report

Electronic Arts Inc. - (EA) - May 24, 2022

Video game producer Electronic Arts (EA) has been rapidly climbing up the rankings in the SIA NASDAQ 100 Index Report. In recent weeks, EA has moved up out of the red zone, where it has spent most of the last four years, to the top of the Yellow Neutral Zone. Yesterday, it finished in 28th place, up 4 spots on the day and up 22 positions in the last month, it’s highest placing since April of 2020. EA is currently sitting two spots outside of the green zone, where it has not been since August of 2018. 

This five-year chart highlights key trading levels for Electronic Arts (EA) shares and the significance of the current rebound. Earlier this month, EA successfully retested channel support near $110, and has rallied up off that level, blasting through its 50-day moving average, snapping a downtrend line, and clearing $130 to move back into the upper half of its long-term $110-$150 sideways trading range. 

Initial upside resistance appears at the top of the channel near the $150 round number, where a breakout would confirm the start of a new advance. Initial support has moved up toward $130 from $120. 

A bullish reversal is underway in Electronic Arts (EA) shares. Earlier this month, EA broke down below $115.00 but the slide was contained by multi-year support near $110.00 ending the breakdown at two rows, one short of becoming a low pole. EA then turned around and rallied, completing a bullish Bear Trap reversal, then a bullish Double Top pattern, and snapped out of a six-month downtrend, all combining to signal renewed accumulation and the start of a new upswing. 

Initial upside resistance appears near $148.55 where several previous advances have topped out since 2008. A breakout there would signal the start of a new uptrend with next potential resistance near the $150.00 round number, then $160.80 based on a horizontal count. Initial support appears near $121.85 based on a 3-box reversal.  

With a bullish SMAX score of 7, EA is exhibiting strength against the asset classes. 

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