Hi guys, updating my TA Electronic Arts Series. I've followed EA since the $108 - 112 range, as i noticed it to be a solid swing opportunity. I will be exiting MAJORITY of my positions on this trade, as it exceeded my expectations.
This analysis is done on the DAILY timeframe.
PRICE ACTION:
As you can see we have filled most of the gap i mentioned in my previous charts. WE are now nearing the top of this down sloping Resistance Line (red line) that has been intact since June 2022.
In my opinion, this will act as resistance and be a major test area.
Price action has also exceeded my expectations as we have currently broke above this trend line titled in yellow that should of acted as resistance. So im being cautious here, as this could either be a downtrend fake out or our current price move up can also be a fakeout especially on higher timeframes perhaps.
I would also pay attention to the size of the upcoming candles especially today and tomorrow. If they small sized bodies, that could be an indicator of a short term trend change to downside.
My target for this move is between $126 and $130. $130 being less likely. A more likely scenario can also be the top of the green box at around $128.
There is always opportunities to trade, so in my opinion this area is good enough for me to sell.
Just hypothetically also, some potential setups in the future for EA could be:
1. If we break the red trend line and confirm above it and have it act as support. ( which is currently less likely in the short term)
2. If price comes back down to test some of the lines drawn below price action. ( maybe more probable)
ALso note that the recent price drop from $129 to $108, people would have centive to sell to cut losses and take profits now if you think in a psycology point of view.
INDICATORS:
All indicators shown are at overbought levels and showing such patterns.
RSI
Is at overbought levels not seen since December 2020. I always base my decisions to sell on this indicator. If i see it above the 70 level, my sell mode mind turns on and i get ready.
STOCH RSI
This indicator also is at overbought area which is indicated by being bove the dashed line or the 80 level. How i use this indicator is i look for a BEARISH cross, which is when its pointed down and the orange line is on top of the blue. Also when it moves below the 80 level, that confirms for me that the momentum is becoming bearish.
WAVETREND OSCILLATOR
The green line has crossed above the red lines indicating overbought area which supports the other 2 indicators, making me think about potentially shorting.
CONCLUSION:
For the short term i beleive we are reaching a critical area, where potentially would be a solid area to TAKE PROFITS in my opinion. Price action is reaching strong resistance and is close to filling a gap. Indicators are in overbought areas which further supports the probabilty of a short term pull back.
Ultimately, we also need to pay attention to the larger timeframes and the bigger picture to see if its possible for EA to break above this downward trend to continue its bullish-nessor if its a fakeout. Stay tuned for that analysis.
HOPE THIS HELPED> Please boost, follow and comment. Let me know if you agree or disagree and why you do so!
DISCLAIMER: The ideas expressed in this analysis are by no means financial advise. I am not a financial adviser. It is just my opinion and for educational purpose.
This analysis is done on the DAILY timeframe.
PRICE ACTION:
As you can see we have filled most of the gap i mentioned in my previous charts. WE are now nearing the top of this down sloping Resistance Line (red line) that has been intact since June 2022.
In my opinion, this will act as resistance and be a major test area.
Price action has also exceeded my expectations as we have currently broke above this trend line titled in yellow that should of acted as resistance. So im being cautious here, as this could either be a downtrend fake out or our current price move up can also be a fakeout especially on higher timeframes perhaps.
I would also pay attention to the size of the upcoming candles especially today and tomorrow. If they small sized bodies, that could be an indicator of a short term trend change to downside.
My target for this move is between $126 and $130. $130 being less likely. A more likely scenario can also be the top of the green box at around $128.
There is always opportunities to trade, so in my opinion this area is good enough for me to sell.
Just hypothetically also, some potential setups in the future for EA could be:
1. If we break the red trend line and confirm above it and have it act as support. ( which is currently less likely in the short term)
2. If price comes back down to test some of the lines drawn below price action. ( maybe more probable)
ALso note that the recent price drop from $129 to $108, people would have centive to sell to cut losses and take profits now if you think in a psycology point of view.
INDICATORS:
All indicators shown are at overbought levels and showing such patterns.
RSI
Is at overbought levels not seen since December 2020. I always base my decisions to sell on this indicator. If i see it above the 70 level, my sell mode mind turns on and i get ready.
STOCH RSI
This indicator also is at overbought area which is indicated by being bove the dashed line or the 80 level. How i use this indicator is i look for a BEARISH cross, which is when its pointed down and the orange line is on top of the blue. Also when it moves below the 80 level, that confirms for me that the momentum is becoming bearish.
WAVETREND OSCILLATOR
The green line has crossed above the red lines indicating overbought area which supports the other 2 indicators, making me think about potentially shorting.
CONCLUSION:
For the short term i beleive we are reaching a critical area, where potentially would be a solid area to TAKE PROFITS in my opinion. Price action is reaching strong resistance and is close to filling a gap. Indicators are in overbought areas which further supports the probabilty of a short term pull back.
Ultimately, we also need to pay attention to the larger timeframes and the bigger picture to see if its possible for EA to break above this downward trend to continue its bullish-nessor if its a fakeout. Stay tuned for that analysis.
HOPE THIS HELPED> Please boost, follow and comment. Let me know if you agree or disagree and why you do so!
DISCLAIMER: The ideas expressed in this analysis are by no means financial advise. I am not a financial adviser. It is just my opinion and for educational purpose.
