Activision Blizzard (ATVI) has been under selling pressure for several months. Monday it was reported by the Wall Street Journal that CEO Bobby Kotick would consider stepping down if he isn't able to make meaningful changes to the videogame maker's workplace culture.
Back on Aug. 2 we wrote that "Traders should have been stopped out and are on the sidelines. Continue to avoid the long side of ATVI until clear signs that a new bottom has been formed."
Let's review the latest charts and indicators.
In the daily bar chart of ATVI, below, we can see that the shares are still in a downtrend. ATVI is trading below the declining 50-day moving average line and below the declining 200-day line.
Trading volume has been heavy this month and the On-Balance-Volume (OBV) line has slumped to a new low for the move down. The OBV line declines when trading volume on down days is heavier than on up days. The Moving Average Convergence Divergence (MACD) oscillator is bearish.