Good technical signals and a possible breakout for ACTIVISION BLIZZARD INC.

A possible breakout setup was detected on ACTIVISION BLIZZARD INC (NASDAQ:ATVI) by our stockscreener. A breakout pattern is formed when a stock consolidates after a strong rise up. We note that this pattern is detected purely based on technical analysis and whether the breakout actually materializes remains to be seen. It could be interesting to keep an eye on NASDAQ:ATVI.

What is the technical picture of NASDAQ:ATVI telling us.

ChartMill assigns a Technical Rating to every stock. This score ranges from 0 to 10 and is updated daily. The score is determined by evaluating multiple technical indicators and properties.

We assign a technical rating of 8 out of 10 to ATVI. This is due to a decent performance in both the short and medium term time frames. Compared to the overall market, ATVI is only an average performer.

• Both the short term and long term trends are positive. This is a very positive sign.
• ATVI is part of the Entertainment industry. There are 80 other stocks in this industry. ATVI outperforms 72% of them.
• ATVI is currently trading in the upper part of its 52 week range. The market is still in the middle of its 52 week range, so ATVI slightly outperforms the market at the moment.
• In the last month ATVI has a been trading in the 75.38 - 81.31 range, which is quite wide. It is currently trading near the high of this range.
• When comparing the yearly performance of all stocks, we notice that ATVI is one of the better performing stocks in the market, outperforming 72% of all stocks. However, this overall performance is mostly based on the strong move around 4 months ago.

How does the Setup look for NASDAQ:ATVI

Besides the Technical Rating, ChartMill also assign a Setup Rating to every stock. This setup score also ranges from 0 to 10 and determines to which extend the stock is consolidating. This is achieved by evaluating multiple short term technical indicators. NASDAQ:ATVI currently has a 8 as setup rating:

ATVI has an excellent technical rating and also presents a decent setup pattern. Prices have been consolidating lately and the volatility has been reduced. There is a resistance zone just above the current price starting at 81.0. Right above this resistance zone may be a good entry point. There is a support zone below the current price at 80.2, a Stop Loss order could be placed below this zone. Another positive sign is the recent Pocket Pivot signal.

How can NASDAQ:ATVI be traded?

For a potential trade one would typically wait until the stock breaks out of the consolidation zone to enter the stock and it could be sold again for a loss when it would fall back below the zone.

This article should in no way be interpreted as trading advice. You should always make your own analysis and trade or not trade based on your own observations and style. The article is based purely on some technical observations.

Our Breakout analyzer lists more breakout setups and is updated daily.