Apex Legends Lifts Electronic Arts, But The Chart Is Pointing Lower

Summary:

• Electronic Arts Inc. EA lifted over 5 percent on Tuesday after fresh data confirmed the popularity of its newly-released battle royale game, Apex Legends.
• However, the stock is in resistance and its market cycles suggest lower prices in the coming months.

Electronic Arts Stock Weekly Chart

Several sell-side analysts upgraded Electronic Arts this on Monday in on expectations for Apex Legends. However, the stock declined over the day's trading session. On Tuesday, EA proved the bulls right by announcing that Apex had 25 million downloads and 2 million concurrent players in its first week. That said, the earnings of game makers dwindling, and it is unclear whether a single game can drive a sustained earnings recovery.

In analyzing the market cycles for EA, we can see the stock is still in the rising phase of its current cycle. However, it is now in resistance. Furthermore, recent cycles are negatively configured, meaning they ended the cycles lower than where they began. We believe it will fail and test its recent lows around $80 by late-April.

Related Links:

'Apex Legends' Hits 25 Million Players, Giving EA's Stock Another Boost

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