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Fan Yang

Electronic Arts (EA) Below Key Support; $90-$92 is Now Resistance

Last week, when we looked at Electronic Art's $EA price action, we were anticipating a bearish breakdown of a key support level.

Electronic Arts (EA) Threatening a Bearish Breakout; $75-$80 in Sight

EA Daily Chart

(click to enlarge)

Bears Back in Charge:
- As we can see on the daily chart, price rebounded in 2019, but remained in consolidation.
- There was a bullish signal when price cleared the cluster of 200-, 100-, and 50-day simple moving averages (SMAs).
- However, this turned out to be a false breakout as price retreated sharply back below $100, and now below the $90 support.
- At this point, I think $90-$92 will provide resistance. I think a break above $95 will be needed to negate bearish outlook.
- Otherwise, there is at least downside to the $75-$80 area. 
- The $71.50-$76 area represents a previous support area. If price can get into this area, I think we will see a subsequent bearish break.
- A break below $71 should open up the $60.50 common support, with possible downside all the way down to $53.50 area, 2016-low.

EA Weekly Chart

(click to enlarge)

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