5 Toxic Stocks to Dump Before 2013
Activision Blizzard
Holiday Call of Duty sales haven't spared Activision Blizzard (ATVI) from forming the exact same setup right now. Like ALB, Activision Blizzard has spent much of 2012 stuck in a downtrending channel that's bounded by well-defined support and resistance. For that reason, the recent bounce higher isn't quite as auspicious at it may first appear.
ATVI has reversed off of resistance the last five times that the price level got tested. That doesn't bode well for a sixth test of that price in December. It may be tempting to put extra emphasis on the move above the 50-day moving average that ATVI just made, but fight the urge. The 50-day is a pretty meaningless level for ATVI right now -- in fact, the only valuable piece of information it's providing is its slope. And that just tells us that ATVI is in a downtrend right now.
The fact that shares are still moving up to resistance means that sellers can at least shoot for a better price from here. I'd be a seller of ATVI on a bounce off of trendline resistance.
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