Electronic Arts Has Its Game On

High beta names have been taking it on the chin since October, but Electronic Arts has been suffering since the summer. When the stock hit its low point two weeks ago, it was about 50% off the all-time high made in July. That’s a stunning decline on very heavy turnover. At some point, the stock has to turn higher, and that might have happened at the end of 2018.

Electronic Arts

Notice the good price action (circled) and solid volume trends. The MACD has now turned up for a buy signal, and the RSI is breaking out to a new high. The stock stopped right at the bottom of the cloud, which is still red. This means the downtrend still intact. The stock could take the projected path, but with so much resistance ahead we must be cautious. The stock has already run 13% higher in two short weeks. A modest pullback to the 20 ma before a move higher is likely.

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