With Activision Blizzard Inc. (ATVI) set to report its latest earnings on Tuesday, let's see how the stock is setting up going into the print.
When we last reviewed ATVI on June 9 we wrote that, "Traders who went long ATVI in late April should continue to hold those positions. Traders who are flat could purchase ATVI here. Raise stop protection to $90 now. $106 and $119 are our price targets for now." Traders should have been stopped out in July so let's check on things again.
In the updated daily bar chart of ATVI, below, we can see that the shares have broken down from what now looks like a large top formation with a neckline across the $85 to $90 area (allowing for a slight upward bias). Prices are below the declining 50-day moving average line and the cresting 200-day moving average line.
The daily On-Balance-Volume (OBV) line made a new low in July and now the downtrend from April has been extended. The trend-following Moving Average Convergence Divergence (MACD) oscillator is below the zero line in sell territory.