Electronic Arts has been on a rollercoaster ride in 2016, but it seems to have found some footing as we enter into the very critical summer months. Since bottoming in February of this year, the stock has been rangebound for two months. We have seen some identifiable patterns, however, and recently we notice a morningstar pattern that had previously powered up the stock in a big way.
The circles on the price chart show four prior morningstar patterns, all of which preceded some nice gains. The MACD has pulled down, but we can see that price is just at the bottom of the range. Turnover is starting to pick up, while a gap at $70 is betting to be hit. A sideways move as we have now is often followed up by some strong moves up or down.
Electronic Arts (Nasdaq: EA) Video Chart Analysis
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About Electronic Arts
Electronic Arts Inc. develops, markets, publishes, and distributes game software content and online services for video game consoles, Internet-connected consoles, personal computers, mobile phones, and tablets worldwide. The company operates through EA Studios, EA Mobile, and Maxis divisions. It develops and publishes digital interactive entertainment games primarily under the The Sims, Madden NFL, EA SPORTS FIFA, Battlefield, FIFA Soccer, Need for Speed, Dragon Age, and Plants vs. Zombies brand names. The company also offers casual games, such as cards, puzzles, and word games through pogo.com and on other platforms; and sells digital content. The company was founded in 1982 and is headquartered in Redwood City, California.
