Analysts at BMO Capital Markets raised shares of EA to ‘Outperform’ today (Tuesday’s Top Analyst Upgrades and Downgrades: Edison International, Electronic Arts, First Solar, Okta, PACCAR, Yeti and More – 24/7 Wall St. (247wallst.com). The stock also has an upped price target($168). EA is moving well on the news. At mid day the stock is the number 3 gainer(+2.5%) in the Nasdaq 100. This powerful move is driving the stock to new July highs.
EA has been moving sideways for most of 2021. This consolidation followed a 75% gain off the March lows. The stock remains rangebound but the odds of an upside breakout are now increasing.
Despite the minimal pullback from the 2021 peak EA is far from overbought. Daily MACD is near neutral.
The 200D held May lows. EA is working on its 2nd straight higher monthly low since.
We consider EA a fairly low risk buy at current levels. On the downside, a close back below $139.00 would violate the July lows sending a clear warning sign of more sideways action ahead.
On the upside, a bit challenge will be the $150-$151 area. Once cleared EA will have room to run.