Based on good technical signals, ELECTRONIC ARTS INC is potentially setting up for a breakout.

Our stockscreener has identified a possible breakout setup on ELECTRONIC ARTS INC (NASDAQ:EA). This occurs when the stock consolidates following a significant upward movement. While the breakout outcome cannot be guaranteed, it may be worth monitoring NASDAQ:EA for potential opportunities.

Deciphering the Technical Picture of NASDAQ:EA

ChartMill assigns a proprietary Technical Rating to each stock. The score is computed daily by evaluating various technical indicators and properties. The score ranges from 0 to 10.

Overall EA gets a technical rating of 10 out of 10. Both in the recent history as in the last year, EA has proven to be a steady performer, scoring decent points in every aspect analyzed.

• Both the short term and long term trends are positive. This is a very positive sign.
• Looking at the yearly performance, EA did better than 82% of all other stocks. On top of that, EA also shows a nice and consistent pattern of rising prices.
• EA is one of the better performing stocks in the Entertainment industry, it outperforms 79% of 70 stocks in the same industry.
• 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.
• In the last month EA has a been trading in a tight range between 144.15 and 150.95.

Our latest full technical report of EA contains the most current technical analsysis.

Looking at the Setup

ChartMill incorporates a Setup Rating in its analysis, which measures the extent of consolidation in a stock over recent days and weeks. This rating, ranging from 0 to 10, is updated daily and takes into account multiple short-term technical indicators. The current setup rating for NASDAQ:EA is 9:

Besides having an excellent technical rating, EA also presents a decent setup pattern. Prices have been consolidating lately and the volatility has been reduced. A pullback is taking place, which may present a nice opportunity for an entry. There is a resistance zone just above the current price starting at 149.33. Right above this resistance zone may be a good entry point. There is a support zone below the current price at 148.75, a Stop Loss order could be placed below this zone. Another positive sign is the recent Pocket Pivot signal.

How can NASDAQ:EA be traded?

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.

More breakout setups can be found in our Breakout screener.

Keep in mind

This article should in no way be interpreted as advice. 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.