Electronic Arts (EA) is scheduled to report its second quarter earnings after the market close Tuesday. Let's see if the charts and indicators give us any hints on direction.
In this daily bar chart of EA, below, we can see that prices have been in a sideways to slightly lower trading range since February. Prices have been trading higher, but closely hugging the rising 50-day moving average line and the rising 200-day moving average line. The On-Balance-Volume (OBV) line has moved sideways since April and made a slightly higher low in October than in July. The Moving Average Convergence Divergence (MACD) is poised to cross the zero-line for an outright go-long signal.
In this weekly bar chart of EA, below, we see an interesting picture. Prices are just slightly above the rising 40-week moving-average line. The weekly OBV line is steady and trading above the highs of 2018.The MACD oscillator is just a fraction below the zero-line and thus not far from a bullish crossing of the zero-line.
In this first Point and Figure chart of EA, below, we used daily data and came up with a $107 price target.
In this second Point and Figure chart of EA, below, we use weekly data and a $112 price target was projected. A rally to $112 is likely to open the way to further gains.
Bottom line strategy: I like the way the charts of EA have been shaping up this year. Go long EA at current levels and risk a trade below $90. The $115 area is our first upside price target.
