The UK blocked the Microsoft (MSFT) - Activision (ATVI) deal Wednesday, surprising analysts and shareholders alike. Britain's Competition and Markets Authority (CMA) said the deal would "stunt innovation and limit choice for gamers over the coming years".
Let's check out the damage to the charts and indicators.
In this updated daily bar chart of ATVI, below, I can see an island reversal. Prices gapped higher in late March, and prices stayed up in a relatively tight range for the past four weeks or so and then gapped sharply lower today. The price action of the last four weeks is like an island (use your imagination). ATVI gapped below the rising 50-day moving average line and is now testing the 200-day moving average line. Trading volume has surged today.
The On-Balance-Volume (OBV) was rising from early February but that advance is likely to end abruptly today. The trend-following Moving Average Convergence Divergence (MACD) oscillator crossed to the downside earlier this month and that move is continuing.




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