ATVI stock price underwent a downswing during April, falling from the high of $87, and entered into May with a bearish sentiment. The fall was because the United Kingdom competition regulators objected to the deal between Activision and Microsoft.
After the downfall, the stock price formed a support at $74.50 in May and started to uptrend, forming higher highs and higher lows. From the May low of $73.61, the price has witnessed a rise of roughly 26%. On July 11, the price finally broke the uptrend in an upward direction and shattered the major resistance level of $84.50.
The price witnessed an increase of 10.02% on July 11 as the consequence of a Federal Judge providing the green light to Microsoft to close its $75 billion acquisition of Activision Blizzard, over the objection of United States regulators. Microsoft and Activision are still seeking the approval of antitrust authorities in the United Kingdom.
The stock price faced rejection from $93.60 and the last candle closed as a bullish candle. If bulls can push the price above $93.60, there is a possibility that the price might head toward the next resistance level of $95.80, thereby causing a roughly 2.33%. On the other hand, if the price breaks the low of the last candle, it might head down toward the recent support of $89.40.
Microsoft-Activision Blizzard Deal
The companies have secured regulatory approval from China, Europe and all the other markets, but hit a roadblock in the U.S. and the U.K. The major obstacle to closing the deal is Britain’s competition and market authorities. The deal was initiated by Microsoft to strengthen its presence in mobile gaming. Mobile gaming is the biggest sector of the video gaming industry in terms of revenue.
Will ATVI Stock Price Reach $100 In July?
The stock price traded above the 20,50,100 and 200-day EMAs, suggesting that the price is in bullish momentum. Chaikin money flow score is 0.03, hinting at a decrease in bullish momentum. The relative strength index (RSI) has been hovering in the overbought zone since July 11, implying that the price has strong bullish momentum.
RSI traded at 75.17, indicating a chance of short-term pullback. The bullish momentum is strong and there is a chance that the price might consolidate for a bit before making any downward move.
Conclusion
Activision Blizzard will soon release its Quarter 2 earnings report on August 2 which might act as a catalyst for the price and help it in reaching $100. Technical parameters suggest that there might be a corrective move for the price to form a support and rise further. The market structure and price are highly bullish and for retracement, it might consolidate for a bit.
Technical levels
Major support: $89.40 and $86.80
Major resistance: $95.80 and $99.30
Disclaimer
The views and opinions stated by the author, or any people named in this article, are for informational purposes only. They do not establish financial, investment, or other advice. Investing in or trading crypto assets comes with a risk of financial loss.
Nancy J. Allen is a crypto enthusiast and believes that cryptocurrencies inspire people to be their own banks and step aside from traditional monetary exchange systems. She is also intrigued by blockchain technology and its functioning.
Source: https://www.thecoinrepublic.com/2023/07/19/activision-blizzard-inc-atvi-stock-is-100-next-target/