FREE Guide: 6 Fibonacci Types that Create the Most Precise Price Levels, Targets, and Reversal Zones

August 17 Chart of the Day - Electronic Arts (EA)

Electronic Arts (EA) is one of the world's largest third-party video game publishers and has transitioned from a console-based video game publisher to the one of the largest publishers on consoles, PC, and mobile.

That's great, but to us it is just another chart...

Since making new all time highs (ATH) at $151.26 and subsequently dropping below $75 back in 2019 price retested its highs in 2021 before drifting lower.  

Three times during the last two years price tested the $110 area only to shoot back up near $140.  All while carving out what we call a change control zone (shaded gray rectangle on the weekly chart.)

Change control zones are one of the five tools we teach when charting anything.  By definition, they are an area that represents where neither the bulls nor bears are in charge.  Price can slash though the zone with seemingly reckless abandon, price can respect the top or bottom from outside it or within it.  Or, price can trade aimlessly sideways within it.  When price breaks away from the zone it can often get drawn back to it like a magnet. And in this case we see all of the above are true.

Price closed at $120.68 yesterday but may be coiling for a breakout or breakdown as seen by simultaneous uptrend and downtrend.  At some point a decision will be made and price likely will break one way or the other.

But we don't make predictions...

Rather, we identify bi-directional price levels of interest using price action technical analysis and utilize those levels for potential trades.  Short or long trades, doesn't matter to us.

Which is much different than an investor's mentality.

So what's next?

Nobody knows for sure but using these 5 price action tools traders and investors can develop levels of interest in both directions.

  1. Support/Resistance
  2. Trend
  3. Fibonacci 
  4. Supply/Demand Zones,
  5. Change Control Zones

Take a look at the charts and let us know what you think.  

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