Activision Blizzard, Inc. (NASDAQ:ATVI) soars after gamers cheer new battle royale ‘Call of Duty’

Activision Blizzard, Inc. (NASDAQ:ATVI) soars after gamers cheer new battle royale ‘Call of Duty’

Activision Blizzard, Inc. (NASDAQ:ATVI) soars after gamers cheer new battle royale ‘Call of Duty’

The surging popularity of Epic Games’ “Fortnite” battle royale game may have peaked due to competition from one of gaming’s biggest franchises, according to Benchmark.

The firm told it clients the initial response to Activision Blizzard’s”Blackout” game mode in “Call of Duty: Black Ops 4” was extremely positive.

Activision’s “upcoming Call of Duty: Black Ops IIII: Blackout, Battle Royale (BR) mode, PS4 beta launched yesterday, greatly exceeding our expectations. Buzz from streamers was sensational, in our view,” analyst Mike Hickey said in a note Tuesday. “Popular Twitch streamers were gushing on the quality and fun of the play, while subscriber comments were calling Blackout a Fortnite and/or PUBG killer.”

Activision Blizzard shares closed 7 percent higher Tuesday.

Hickey reiterated his buy rating for the game publisher’s shares, predicting its the “Call of Duty” battle-royale offering will thrive against “Fortnite.”

The analyst said the “Call of Duty” beta generated nearly 400,000 viewers on Twitch, nearly tripling “Fortnite’s” number. He estimates the game’s battle royale mode can generate more than $500 million of annual incremental sales.

“We believe Blackout will be a potentially massive hit,” he said. “We believe the game will migrate investor focus from the Fortnite led BR competitive threat to the opportunity for BR in driving meaningful growth.”

Hickey reaffirmed his $93 price target for Activision Blizzard shares, representing 25 percent upside to Monday’s close.

Overall, the bias in prices is: Upwards.

The projected upper bound is: 83.92.

The projected lower bound is: 75.21.

The projected closing price is: 79.56.

Candlesticks

A big white candle occurred. This is generally considered bullish, as prices closed significantly higher than they opened. If the candle appears when prices are “low,” it may be the first sign of a bottom. If it occurs when prices are rebounding off of a support area (e.g., a moving average, trendline, or retracement level), the long white candle adds credibility to the support. Similarly, if the candle appears during a breakout above a resistance area, the long white candle adds credibility to the breakout.
During the past 10 bars, there have been 7 white candles and 3 black candles for a net of 4 white candles. During the past 50 bars, there have been 25 white candles and 25 black candles.

Three white candles occurred in the last three days. Although these candles were not big enough to create three white soldiers, the steady upward pattern is bullish.

Momentum Indicators

Momentum is a general term used to describe the speed at which prices move over a given time period. Generally, changes in momentum tend to lead to changes in prices. This expert shows the current values of four popular momentum indicators.

Stochastic Oscillator

One method of interpreting the Stochastic Oscillator is looking for overbought areas (above 80) and oversold areas (below 20). The Stochastic Oscillator is 95.6652. This is an overbought reading. However, a signal is not generated until the Oscillator crosses below 80 The last signal was a sell 7 period(s) ago.

Relative Strength Index (RSI)

The RSI shows overbought (above 70) and oversold (below 30) areas. The current value of the RSI is 68.72. This is not a topping or bottoming area. A buy or sell signal is generated when the RSI moves out of an overbought/oversold area. The last signal was a sell 58 period(s) ago.

Commodity Channel Index (CCI)

The CCI shows overbought (above 100) and oversold (below -100) areas. The current value of the CCI is 225.This is an overbought reading. However, a signal isn’t generated until the indicator crosses below 100. The last signal was a sell 6 period(s) ago.

MACD

The Moving Average Convergence/Divergence indicator (MACD) gives signals when it crosses its 9 period signal line. The last signal was a buy 13 period(s) ago.

Rex Takasugi – TD Profile

ACTIVISIN BLIZRD closed up 5.240 at 79.500. Volume was 145% above average (neutral) and Bollinger Bands were 16% wider than normal.

Open High Low Close Volume___
74.880 79.540 74.660 79.500 14,053,589

Technical Outlook
Short Term: Overbought
Intermediate Term: Bullish
Long Term: Bullish

Moving Averages: 10-period 50-period 200-period
Close: 73.90 74.59 70.77
Volatility: 48 37 37
Volume: 6,870,512 6,211,138 6,134,851

Short-term traders should pay closer attention to buy/sell arrows while intermediate/long-term traders should place greater emphasis on the Bullish or Bearish trend reflected in the lower ribbon.

Summary

ACTIVISIN BLIZRD is currently 12.3% above its 200-period moving average and is in an upward trend. Volatility is extremely high when compared to the average volatility over the last 10 periods. There is a good possibility that volatility will decrease and prices will stabilize in the near term. Our volume indicators reflect volume flowing into and out of ATVI.O at a relatively equal pace (neutral). Our trend forecasting oscillators are currently bullish on ATVI.O and have had this outlook for the last 3 periods.

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