Yesterday, we looked at a Daily Price Chart of NetEase.com, Inc., noting that the stock has been making a series of higher highs and higher lows.
Today’s Chart of the Day is a 10-Month Simple Moving Average chart for Activision Blizzard Inc. (NASDAQ: ATVI).
Activision Blizzard, Inc. develops and distributes content and services on video game consoles, personal computers (PC), and mobile devices in the Americas, Europe, the Middle East, Africa, and the Asia Pacific.
The company operates through three segments: Activision Publishing, Inc., Blizzard Entertainment, Inc., and King Digital Entertainment. It develops, publishes, and sells interactive software products and entertainment content for the console and PC platforms through retail and digital channels.
Now, below is a 10-Month Simple Moving Average (SMA) chart for Activision Blizzard Inc.
Back in July 2019, the ATVI 1-Month Price crossed above the 10-Month SMA indicating ATVI is on a PowerTrend ‘buy’ signal (circled below).
Guess what happened next…
Sure enough, prices continued to rise.
Since the PowerTrend ‘buy’ signal occurred for the stock back in July 2019 – when the stock was around $48.74 – the stock has seen a 62.8% increase.
Now, as you can see, the 1-Month MA is still above the 10-month SMA. That means the bullish trend is still in play!
This bullish price trend makes ATVI a good candidate for a call option purchase.
As long as the 1-Month Price remains above the 10-month SMA, the stock is more likely to keep trading at new highs in the coming days and weeks.
We’ll be keeping our eye on this stock as it continues to trend upward. That way we’ll know the moment the market conditions shift and the stock begins to come back down, offering a better buying opportunity in a bullish market.
Additionally, we’d like to talk about how a previous Chart of the Day stock has done…
The Power of Options
On June 16, we highlighted DocuSign, Inc. (NASDAQ: DOCU), noting that DOCU’s OBV line was in an uptrend. This validated the stock’s bullish movement.
If you happened to have purchased DOCU shares on that day, you’d already be up 17.8%.
But… if you had purchased the right option contract, you would be up 146.3% in just a months’ time!
That’s the power of options.
Editor, Chart Of The Day