Gamers Getting Giddy at Christmas

• Posted by Greg Harmon
• on December 23rd, 2013

Video Game stocks have been gathering attention lately. And for good reason. When you look at their charts they are breaking higher or about to do so. Take Activision Blizzard, $ATVI, for example. It has been bouncing off of support at 16 since late August and consolidating against a top at 17.90. The Monday before Christmas sees it breaking that channel to the upside. It has support to continue from the rising ad bullish Relative Strength Index (RSI) and the MACD that is turning

back higher. Once it can clear the previous high spike at 18.43 it has no upside resistance from previous price action. And look what has happened the last two times it has cleared a consolidation zone this long. There was a 30% rise from the break of the down channel in February and a 25% jump on the break in July this year. Add a 25-30% pop onto this break out and you get a price range of 22.35-23.25. Now that is worth getting giddy about. Happy Holidays!

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