As you know, all of the leading video game developers have been under selling pressure since October 2018. Video game developer stocks such as Activision Blizzard Inc (NASDAQ:ATVI), Electronic Arts (NASDAQ:EA) and Take-Two Interactive Software Inc (NASDAQ:TTWO) are all trading sharply lower again today. When a stock fails to catch a bid when the market is rallying it is usually a sign of further weakness.
Activision Blizzard Inc (NASDAQ:ATVI) is breaking its 200-week moving average today so this stock is now on my radar for further near term weakness. The next major support level that I see for this stock will be around the $40.00 area. This level is where the stock broke out in February 2017. Should ATVI stock back-test this level it should lead to a nice swing trade opportunity.