We're seeing a similar setup right now in shares of video game maker Activision Blizzard (ATVI). Activision had been struggling lower, until a surprise in first quarter guidance sparked a huge gap up in shares. While investors should be excited about the 36% gains they've seen in 2013, there's reason to believe this stock is headed lower.
That's because, like Facebook, Activision Blizzard is currently forming a head and shoulders top pattern. The setup is in earlier stages than Facebook's make-or-break pattern, but it's still worth heeding with a neckline level at $14. If ATVI moves through $14, I'd recommend being a seller.
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