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Can This Mammoth Gaming Stock Overcome Its Blizzard And Win Again? • 2nd Skies Trading

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Activision Blizzard has been in the news for positive and negative reasons recently. On the negative side, the company has been dragged into lawsuits for discrimination and harassment. On the positive side, news has came out about Microsoft’s interest in acquiring Activision Blizzard, and Warren Buffet’s Berkshire Hathaway increased its stake in the company to 9.5%.

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Source: Alexander Cifuentes

But beyond the news and speculations, is Activision Blizzard, Inc. (Nasdaq: ATVI) stock a good stock to buy now?

Support and Resistance

The ATVI stock looks to be on a clear uptrend on the monthly chart. This trend took off in 2013 and never looked back, at least until last year. The stock hit its highest price level of close to $105 in February 2022 and has since pulled back to the trendline created by the multi-year uptrend.

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Zooming into the weekly chart, we see some key areas at the $66.8 – $69.4 and $85.7 – $88.4 levels. ATVI is currently sandwiched between these two levels with the former being the support. And while the stock looks to be on its way to the support level, it still has to overcome an area of potential resilience at the $77 price level.

Signals and Forecast

ATVI stock is more or less floating between the $66.8 – $69.4 support level and the $85.7 – $88.4 resistance level. A reasonable buy opportunity could arise if the price makes it to the support level. And if the price rises and breaks out of the resistance level, another buy opportunity may appear.

However, there’s a chance that the stock falls back to the trend line from the monthly chart. If this happens, traders should be wary of buying the stock, as that may signify that the uptrend is ending.

Should You Buy Activision Blizzard Stock?

Do not buy Activision Blizzard stock yet. While there are positive signs on the stock, now is not the perfect time to get in on the stock based on the technical analysis from above.

However, Activision Blizzard stock makes a fairly reasonable buy for traders who care more about fundamentals than technicals.

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