ATVI finds buyers around 80.09 for the third day in a row
Activision Blizzard Inc (ATVI) Technical Analysis Report for Oct 27, 2020 | by Techniquant Editorial Team
ATVI finished Tuesday at 80.96 gaining $0.47 (0.58%), slightly underperforming the Nasdaq 100 (0.82%). Trading $0.49 higher after the open, the market was unable to hold its gains as the bears took control ending the day below its opening price. Closing within the prior day's range, prices missed to decisively move beyond the previous day's trading range in a lackluster session.
Daily Candlestick Chart (ATVI as at Oct 27, 2020):
Tuesday's trading range has been $1.40 (1.73%), that's below the last trading month's daily average range of $1.94. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for ATVI. Prices continued to consolidate within a tight trading range between 79.57 and 82.59 where it has been caught now for the whole last trading week.
During the whole day, prices traded within the prior day's range, unable to trade above the previous day's high or below the prior day's low forming an Inside Bar. Additionally, two candlestick patterns are matching today's price action, the Northern Doji which is known as bearish pattern and one neutral pattern, the Doji.
The share managed to close back above the 50-day moving average at 80.93. When this moving average was crossed above the last time on October 23rd, ATVI actually lost -0.68% on the following trading day. Prices are trading close to the key technical resistance level at 82.31 (R1). The stock found buyers again today around 80.09 for the third trading day in a row after having found demand at 79.76 in the previous session and at 79.89 two days ago.
Although still in a long-term uptrend, the short and medium-term trends both turned bearish already.
Buying could accelerate should prices move above the nearby swing high at 81.76 where further buy stops might get triggered. Selling could speed up should prices move below the close-by swing low at 79.76 where further sell stops might get activated. As prices are trading close to October's high at 83.54, upside momentum could accelerate should Activision Blizzard mark new highs for the month.
Among the eight market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bullish Break through SMA 50" stand out. Its common bullish interpretation has been confirmed for Activision Blizzard. Out of 98 times, ATVI closed higher 56.12% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the long side has been after 10 trading days, showing a win rate of 62.24% with an average market move of 1.10%.