ELECTRONIC ARTS INC is showing promising signs of setting up for a breakout.

ELECTRONIC ARTS INC (NASDAQ:EA) was identified as a Technical Breakout Setup Pattern by our stockscreener. Such a pattern occurs when we see a pause in a strong uptrend: after a strong rise the stock is consolidating a bit and at some point the trend may be continued. Whether this actually happens can not be predicted of course, but it may be a good idea to keep and eye on NASDAQ:EA.

What is the technical picture of NASDAQ:EA telling us.

ChartMill employs a sophisticated system to assign a Technical Rating to every stock in its analysis. This rating, which ranges from 0 to 10, is determined by carefully assessing multiple technical indicators and properties.

Taking everything into account, EA scores 7 out of 10 in our technical rating. This is due to a decent performance in both the short and medium term time frames. Compared to the overall market, EA is only an average performer.

• Both the short term and long term trends are positive. This is a very positive sign.
• EA is part of the Entertainment industry. There are 75 other stocks in this industry. EA outperforms 74% of them.
• EA is currently trading in the upper part of its 52 week range. The S&P500 Index however is currently trading near a new high, so EA is lagging the market slightly.
• When comparing the performance of all stocks over the past year, EA turns out to be only a medium performer in the overall market: it outperformed 64% of all stocks.
• In the last month EA has a been trading in a tight range between 135.05 and 140.11.

Check the latest full technical report of EA for a complete technical analysis.

How does the Setup look for NASDAQ:EA

ChartMill takes into account not only the Technical Rating but also assigns a Setup Rating to each stock. This rating, on a scale of 0 to 10, reflects the degree of consolidation observed based on short-term technical indicators. Currently, NASDAQ:EA exhibits a 9 setup rating, indicating its consolidation status in recent days and weeks.

EA has an excellent technical rating and also presents a decent setup pattern. Prices have been consolidating lately and the volatility has been reduced. There is a resistance zone just above the current price starting at 139.43. Right above this resistance zone may be a good entry point. There is a support zone below the current price at 138.64, a Stop Loss order could be placed below this zone. Very recently a Pocket Pivot signal was observed. This is another positive sign.

Trading breakout setups.

To potentially initiate a trade, it is common practice to wait for the stock to break out of the consolidation zone. This breakout signifies a potential upward movement, and traders may enter the stock at that point. Conversely, if the stock falls back below the consolidation zone, it may be sold at a loss.

This article should in no way be interpreted as trading advice. You should always make your own analysis and trade or not trade based on your own observations and style. The article is based purely on some technical observations.

Our Breakout screener lists more breakout setups and is updated daily.

Disclaimer

This article should in no way be interpreted as advice in any way. The article is based on the observed metrics at the time of writing, but you should always make your own analysis and trade or invest at your own responsibility.