Activision Blizzard (ATVI) Get Slammed, Here’s The Trade

President & CEO Chief Market Strategist at IntheMoneyStocks.com • Nov 3, 2021 at 1:06 PM EDT

The next major support level for Activision Blizzard (ATVI) stock will be around the $56.00 level. This important support area is where the stock broke out of a 4-month base back in March 2020.

Today, the leading video game developer, Activision Blizzard Inc (ATVI), is selling off sharply after reporting earnings. The company gave light Q4 guidance and delayed the release of two of its larger titles. This news has sent the shares lower by over 15.0% to $65.69 a share. The stock is now trading below its 200-week moving average. This puts the stock in a very weak technical position on the charts and often signals further downside in the near term.

The next major support level for Activision Blizzard (ATVI) stock will be around the $56.00 level. This important support area is where the stock broke out of a 4-month base back in March 2020. Often, when stocks retest their prior breakout levels they will be defended by the institutional crowd. This area also matches up nicely with a major retrace level, this should add strength to the support area. I will be looking at a potential long side trade in Activision Blizzard (ATVI) stock around the $56.00 level.

Disclaimer:

All comments made by InTheMoneyStocks, LLC and its subsidiaries, instructors, and representatives are for educational and informational purposes only and should not be construed as investment advice regarding the purchase or sale of securities, or any other financial instrument of any kind. Please consult with your financial adviser before making an investment decision regarding any securities mentioned herein. InTheMoneyStocks, LLC and its representatives assume no responsibility for your trading and investment results. All information on the website was obtained from sources believed to be reliable., but we do not warrant its completeness or accuracy, or warrant any results from the use of the information. InTheMoneyStocks, LLC, its employees, representatives and affiliated individuals may have a position or effect transactions in the securities herein and or otherwise employ trading strategies that may be consistent or inconsistent with the provided strategies. Trading of any type involves a very high degree of risk. Futures and Options trading are not suitable for all investors. Past results are not indicative of future results. InTheMoneyStocks, LLC, its subsidiaries and all affiliated individuals assume no responsibility for your trading and investment results.