Electronic Arts (EA)

Mar 11, 2021Trade Ideas

Electronic Arts (EA) has become severely oversold.

If you pull up a three-year chart of EA with Bollinger Bands (2,20), RSI, MACD, and Williams’ %R, you can see just how oversold it’s become. Also, take a look at what happens nearly 85% of the time when RSI, MACD, and Williams’ %R align in oversold territory, coupled with EA at its lower Bollinger Band. Most times it pivots higher.

We expect for the same to happen again.

Helping, the video game market has been incredible. Video game spending in 2020 came in at $56.9 billion, 27% higher year over year. For 2021, sales could grow to $189.3 billion, according to analysts over at Newzoo.

In short, the pullback in EA is a great opportunity. Investors can buy the stock at market, and, or buy to open the EA April 16, 2021 135 calls at market prices.

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