Electronic Arts (EA) reported earnings after the bell on Tuesday. The company reported adjusted EPS of $1.31, which beat consensus estimates of $0.97. Revenue came in at $1.21B, which also beat consensus estimates of $1.18B. A number of analysts raised their price targets on the stock after the report. EA is currently down 4% on the day. Given this background, let’s take a look at the weekly chart.
Electronic Arts (EA) – annotations by askSlim.com
At askSlim.com we use technical analysis to evaluate price charts of stocks, futures, and ETF’s. We use a combination of cycle, trend and momentum chart studies, on multiple timeframes, to present a “sum of the evidence” directional outlook in time and price.
askSlim.com Technical Briefing: The weekly cycle analysis suggests that EA is in a rising phase and due to form an intermediate-term high. Weekly momentum is positive.
On the upside, there is a major resistance zone from 112.58 – 121.71. On the downside, there is an intermediate support zone from 107.07 – 102.94. For the bears to regain control of the intermediate-term, we would need to see a weekly close below 93.07.
askSlim.com Sum of the Evidence: EA is in a rising phase with positive weekly momentum. The stock is testing a major resistance zone and the odds favor a pullback from this area. There is a likelihood the stock tests 107 by the end of June.
Interested in askSlim.com?
Get professional grade technical analysis, trader education and trade planning tools at askSlim.com. Write to firstname.lastname@example.org for special askSlim membership trial offers!