Two weeks ago, I highlighted a stock that has been setting up all year.
Yesterday it triggered a buy.
Today it’s still in a great position for a trade.
Read below for the details.
Below you’ll see the weekly chart of Activision (ATVI) that I sent you previously. As you can see, it has been basing all year.
As I explained previously, the base alone doesn’t make it a good trade right now.
The reason to focus on ATVI now is
because right as the market began to roll over, it announced earnings.
The earnings news pushed ATVI out
of its base, but the market downturn pulled it back into the base.
Despite more weakness in the market, ATVI has rallied to the top of its base as you can see from the daily chart below.
Now that it’s trading over 50, it’s a buy with a stop under 47.
If you’re looking for an added level of confirmation of a breakout, then the buy trigger would be a trade over $51.
The general market is still in a very weak position, so be sure to trade prudently.
Rick Nartarian, Chief Investment Officer
Darwin Wealth Creation