Activision Blizzard (ATVI) is having a tough year -- shares of the $12 billion video game maker have fallen around 8% in the last 12 months, underperforming the S&P 500 by 22.42%. But the technical setup in this stock points to even more toxic price action in 2013.
That's because Activision Blizzard has been stuck in a volatile downtrending channel for the better part of the last year, bouncing in between trendline resistance to the upside and trendline support below shares. The strength of that trendline resistance level is significant -- it's the price above which there's a consistent glut of selling pressure for shares, so it provides an ideal selling point for investors trying to squeeze the most out of this stock (or for short sellers trying to do the same).
Until this stock can manage to take out those sellers above resistance, I'd strongly recommend staying away from shares of this stock. If it cant catch a bid above resistance, you don't want to be a buyer.
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass + 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV