Electronic Arts Inc. (Friday’s close US$130.19) had a major rise since 2012 (not shown), above its rising 40-week Moving Average (40wMA) and above a rising trend-line (dashed line), culminating at US$151.25 in July, 2018 (A). Soon thereafter, the stock began a major decline below these indicators and reached a low near US$75 (B), where it reversed again and settled in a large trading range mostly between US$89 and US$110 (dotted lines). Electronic Arts had a breakout from this trading range recently to signal the start of a new up-leg toward higher prices (C). There is good support near US$105-108; only a sustained decline below this level would be negative. Point & Figure measurements provide targets of US$135 and US$145. The large trading range (dotted lines) supports higher targets.
stock
Monica Rizk is the senior Technical Analyst and Ron Meisels is the president of Phases & Cycles Inc. (www.phases-cycles.com). And he tweets at @Ronsbriefs. They may hold shares in companies profiled.
Chart source: www.decisionplus.com
Be smart with your money. Get the latest investing insights delivered right to your inbox three times a week, with the Globe Investor newsletter. Sign up today.