Electronic Arts (EA) has been in a long-running uptrend and I see no top pattern in sight. What does that mean? Simple. I look to be a buyer. Let's check what the charts look like, and see if we can identify what might be a location or time to buy.
The chart of EA, below, has been moving from the lower left to the upper right for the past year. Prices are showing some softness over the past month, but the broad picture has been strength. EA recently declined below the 50-day moving average line, but it remains above the rising, 200-day line.
The daily On-Balance-Volume (OBV) line started a strong move up in May, and only pulled back slightly from an early October high. The $75+ area acted as resistance in May to July, and any further price weakness for EA is likely to be halted by buyers returning at this prior resistance area. In an uptrend, prior resistance areas often reverse roles and become support areas on a decline.
In this three-year weekly chart of EA, below, we see a long and strong performance. EA is above the rising, 40-week moving average line. The weekly OBV line has been neutral/flat for a long time. The weekly Moving Average Convergence Divergence (MACD) oscillator is crossed, signaling a liquidate-longs sell signal, but because this oscillator is so far above the zero line I expect only a shallow reaction.
Strategy: Only three things can happen from here: EA can go up, down or sideways. We can ignore a sideways move for now. If EA pulls back and tests and holds anticipated support around $75, I would look to be a buyer risking a close below $71. If EA rallies from here, I want to buy strength over $86.