Toys Are Starting To Surge Again

Greg Schnell

Greg Schnell

Chief Technical Analyst, Osprey Strategic

The toy business has been in a massive uptrend if you are in the right stocks. It is a fickle business group as they seem to treat the shares aggressively. Buy the good ones quickly, sell the weak ones even faster. 

This week, Activision (ATVI) closed above 5-week highs on the strongest positive volume in a year. This stock seems to give one full stochastic signal a year, and it just gave us a signal here. The three year weekly chart is shown.

Electronic Arts (EA) also had a strong week. With huge volume Thursday and above average volume on Friday, some buyers are showing up for work.  The MACD has shown some nice positive divergence and the chart looks set up to run as price closed above the down sloping trend line. Friday's close was back above the mid summer 2017 highs after bouncing off the 200 day moving average. The SCTR looks set to run into the top quartile above 75.

Here is the chart for the Toy Industry. Nice push to end the week.

If you have had a chance to check out my new show on StockCharts TV, let me know what you would like to see. This is in addition to Commodities Countdown and the Canadian Technician Videos. In this weeks video, It shows how to find these leading industry groups and specifically talks about some of the gambling stocks.

The Commodities Countdown recording will be out over the weekend. Click 'follow' on my Vimeo Channel to be notified when it is available for viewing.

You can also follow me on Twitter @Schnellinvestor.

Good trading,
Greg Schnell, CMT, MFTA

Greg Schnell
About the author: , CMT, MFTA is Chief Technical Analyst at Osprey Strategic specializing in intermarket and commodities analysis. He is also the co-author of Stock Charts For Dummies (Wiley, 2018). Based in Calgary, Greg is a board member of the Canadian Society of Technical Analysts (CSTA) and the chairman of the CSTA Calgary chapter. He is an active member of both the CMT Association and the International Federation of Technical Analysts (IFTA). Learn More