Electronic Arts: Breakout and PullbackElectronic Arts broke out to new all-time highs last month, and now it’s pulled back.
The first pattern on today’s chart is the bullish gap on August 11 following a successful test of its Battlefield 6 video game. Combined with a strong quarterly report on July 29, those moves could reflect positive fundamentals.
Second is $167.01, an old record weekly closing high from December 6. EA has tested below that level in recent sessions but remained above it. Has old resistance become new support?
Third, Wednesday’s session saw a higher high and lower low. That kind of bullish outside candle may be viewed as evidence of buying activity. EA also closed above its 21-day exponential moving average, a potentially positive short-term signal.
Next, the 50-day simple moving average (SMA) is above the 100-day SMA. Both are above the 200-day SMA. That recent alignment, with faster SMAs above slower ones, may suggest a long-term bullish trend has begun.
Finally, stochastics are rebounding from an oversold condition.
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