Activision Blizzard, Inc. (NASDAQ:ATVI) stock sells at price-earnings ratio of 23x
Fundamentally, ATVI is not cheap: it sells at price-earnings ratio of 23x, but it’s not bloated either. The fall from grace shed a lot of the froth. The question to ask is if Activision stock has a chance to recapture its old glory.
The stock has two clear zones of trading, one above the $63 area and one below it. This rally brings the opportunity for a step change. But to be realistic, ledges this big leave a lot of resistance behind, so it won’t be easy. Luckily, these mini catalyst lines I shared today should at least be a start toward that end. On the downside, it’s important for ATVI to hold $44.75, so as to maintain the higher-low trend off the bottom.
Overall, the bias in prices is: Downwards.
Note: this chart shows extraordinary price action to the upside.
The projected upper bound is: 51.39.
The projected lower bound is: 43.48.
The projected closing price is: 47.44.
A white body occurred (because prices closed higher than they opened).
During the past 10 bars, there have been 5 white candles and 5 black candles. During the past 50 bars, there have been 27 white candles and 23 black candles for a net of 4 white candles.
A doji star occurred (where a doji gaps above or below the previous candle). This often signals a reversal with confirmation occurring on the next bar.
A long lower shadow occurred. This is typically a bullish signal (particularly when it occurs near a low price level, at a support level, or when the security is oversold).
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.
One method of interpreting the Stochastic Oscillator is looking for overbought areas (above 80) and oversold areas (below 20). The Stochastic Oscillator is 61.5875. This is not an overbought or oversold reading. The last signal was a buy 1 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 60.40. 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 buy 66 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 72. This is not a topping or bottoming area. The last signal was a sell 6 period(s) ago.
The Moving Average Convergence/Divergence indicator (MACD) gives signals when it crosses its 9 period signal line. The last signal was a buy 22 period(s) ago.
Rex Takasugi – TD Profile
ACTIVISIN BLIZRD closed up 0.340 at 47.460. Volume was 24% below average (neutral) and Bollinger Bands were 15% narrower than normal.
Open High Low Close Volume___
47.420 47.780 46.200 47.460 9,697,675
Short Term: Neutral
Intermediate Term: Bullish
Long Term: Bearish
Moving Averages: 10-period 50-period 200-period
Close: 46.63 44.55 61.20
Volatility: 46 56 53
Volume: 9,778,608 13,800,013 9,742,489
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.
ACTIVISIN BLIZRD is currently 22.5% below its 200-period moving average and is in an upward trend. Volatility is relatively normal as compared to the average volatility over the last 10 periods. Our volume indicators reflect moderate flows of volume into ATVI.O (mildly bullish). Our trend forecasting oscillators are currently bullish on ATVI.O and have had this outlook for the last 12 periods.