Electronic Arts (EA) had a very strong and impressive May. Can the strength carry further in June? Let's examine the charts.
In this daily chart of EA, above, we can see a strong upside gap in early May as prices jumped over the 50- and 200-day moving averages. This was followed by a golden cross of the 50- and 200-day averages. The On-Balance-Volume (OBV) line rose in May. In the bottom panel is the 12-day momentum study, and there are very strong readings in May that are typical at the start of a strong move.
In this weekly chart of EA, above, we can see prices above the 40-week moving average, which is just now turning up. The OBV line on this weekly time frame is positive and the Moving Average Convergence Divergence (MACD) is in a buy mode above the zero line. Bottom line: With a strong daily chart and a strong weekly chart, it should be just a matter of time before EA breaks out to new highs. Go long or add to longs on EA with a close above $78. Our upside target is $90.