Activision Blizzard (ATVI) sports a bullish continuation pattern and improving momentum. The stock gapped up in mid January and broke out in early February. ATVI was overbought after a 25% surge and worked off these overbought conditions with an extended flag. I say extended because eight weeks is getting long for a flag pattern. Nevertheless, the flag represents a consolidation and a flag breakout would signal a continuation of the January-February surge. The indicator window shows MACD holding above zero and moving above its signal line this week.
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About the author:
Arthur Hill, CMT, is the Chief Technical Strategist at TrendInvestorPro.com. Focusing predominantly on US equities and ETFs, his systematic approach of identifying trend, finding signals within the trend, and setting key price levels has made him an esteemed market technician. Arthur has written articles for numerous financial publications including Barrons and Stocks & Commodities Magazine. In addition to his Chartered Market Technician (CMT) designation, he holds an MBA from the Cass Business School at City University in London.
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