EA stands at crossroads
מעודכן
When EA announced their earnings at the end of January, I expected a jump, but what occurred made me piss my pants. The stock price opened just below a previously speculated trend line. The resistance has held its ground and the gaming stock has retraced back below 125.00 level.
So what is in for the future?
The fundamental earnings jump has confirmed the existence of a medium scale ascending pattern (purple lines). Taking into account, where are the trend lines of the long term dominant pattern (blue lines), the stock is set for more and more gains.
However, that does not necessarily mean that one should just go long on the stock. There is something much more complicated.
The jump also confirmed the junior pattern (black lines). Although, after the bounce off from the medium pattern’s resistance, the junior pattern should become obsolete (it will be broken and sent to hell (or Valhalla, as it has served its purpose).
Before that occurs the black channel has one last trick up its sleeve. The lower trend line of it has not been passed. Actually, the drop on Friday stopped just before reaching the support line.
Due to that reason on Monday one needs to watch, whether it holds the ground or lets the stock fall down. If it lets it pass, then the range down to the support cluster that surrounds the 120 mark will be targeted.
On the other hand the support might hold and propel the price into another attempt to break properly above the 130.00 mark.
Meanwhile, I have conducted an experiment with the Fibonacci retracement levels. By setting the 100% mark at the low level of the black channel and the 0% at the high achieved after the earnings call, it can be seen that the first notable retracement level at 126.50 provided support to the stock.
Coincidentally or not the next one is crossing the support line of the channel. Sooooo.. to be exact the 124.00 level will be on the spotlight on Monday.
Yours sincerely,
Y
So what is in for the future?
The fundamental earnings jump has confirmed the existence of a medium scale ascending pattern (purple lines). Taking into account, where are the trend lines of the long term dominant pattern (blue lines), the stock is set for more and more gains.
However, that does not necessarily mean that one should just go long on the stock. There is something much more complicated.
The jump also confirmed the junior pattern (black lines). Although, after the bounce off from the medium pattern’s resistance, the junior pattern should become obsolete (it will be broken and sent to hell (or Valhalla, as it has served its purpose).
Before that occurs the black channel has one last trick up its sleeve. The lower trend line of it has not been passed. Actually, the drop on Friday stopped just before reaching the support line.
Due to that reason on Monday one needs to watch, whether it holds the ground or lets the stock fall down. If it lets it pass, then the range down to the support cluster that surrounds the 120 mark will be targeted.
On the other hand the support might hold and propel the price into another attempt to break properly above the 130.00 mark.
Meanwhile, I have conducted an experiment with the Fibonacci retracement levels. By setting the 100% mark at the low level of the black channel and the 0% at the high achieved after the earnings call, it can be seen that the first notable retracement level at 126.50 provided support to the stock.
Coincidentally or not the next one is crossing the support line of the channel. Sooooo.. to be exact the 124.00 level will be on the spotlight on Monday.
Yours sincerely,
Y
הערה
Have fun...buying the dip. Might add some more stuff, when I have more time or someone makes a request. הערה
One comment to this one.. It never.. never, as long as I have watched had opened at the implied opening price. Ignore the after market!הערה
The support of the purple one was hit and the stock is going up during this slow recovery day.הערה
Although it went my direction, I don't like the picture.Had to adjust the purple and even previous black lines while drawing the active junior pattern. Check out the full picture. Might comment in the weekend more.
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Just watching for now... but spotted the possible short term pattern.הערה
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Staying longהערה
An update for myself to remember, what I was doing and thinking here. If anyone is interested,I can explain upon request.
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That short term support got knocked out. I have nothing on this now. Will just watch the purple support.
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כתב ויתור
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