Leading developer of video game software, Electronic Arts Inc (EA), remains weak on the charts. The video game maker reported earnings on August 5th, 2021, and plunged lower after the announcement. Electronic Arts Inc (EA) shares were trading as high as $146.50 a share on August 5th and currently trade at $138.60 a share. The stock is now trading below its important 50-day moving average. This puts the stock in a weak technical position on the charts and often indicates further downside in the near term.
Traders should now watch the $130.00 level for the next major support area. This important support level is where the stock was defended in late March 2021. Often, prior major pivot levels will be excellent support when initially retested. The 20-month moving average is located around this level adding strength to the support area if tested. This level should present a solid bounce area for the stock.
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