Activision Blizzard Stock Approaches Crucial Resistance Levels
Shares of Activision Blizzard are climbing once again, with traders closely monitoring pivotal resistance points ahead.
Activision Blizzard Inc. (ATVI) shares edged higher on Monday following a positive outlook from Oppenheimer last week. The firm maintains an optimistic stance on major video game publishers such as Take-Two Interactive Software, Inc. (TTWO), Electronic Arts, Inc. (EA), and Activision Blizzard, despite short-term challenges facing the industry. Notably, the upcoming release of Activision’s flagship title, "Call of Duty: Black Ops 4," scheduled for October, is expected to act as a significant revenue driver.
In late July, most video game publishers experienced declines, only beginning to recover by late August, with Take-Two Interactive being an exception. This downturn was primarily due to decreased e-sports viewership on platforms like Twitch and ESPN/Disney XD. However, a 14% increase in video game sales during July helped restore investor confidence and improve market outlook. (See also: How the Video Game Industry Is Evolving.)
Technically, Activision Blizzard’s stock bounced off a pivot support level near $72.00 and is currently testing resistance around the 50-day moving average at approximately $74.50. The relative strength index (RSI) stands neutral at 55.95, while the moving average convergence divergence (MACD) signals a bullish momentum, supporting the upward trend.
Traders should keep an eye on a potential breakout beyond these resistance levels, targeting R1 at $75.84 and eventually R2 near $79.50. Conversely, if the stock pulls back, it could revisit support zones around $68.30. In the short term, expect some consolidation between $71.00 and $75.00 before a decisive move occurs. (For further insights, see: Activision Blizzard Stock Exhibits Bullish Momentum.)
Charts provided by StockCharts.com. The author does not hold positions in the mentioned stocks except through passively managed index funds.
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