DailyPlay – Activision Blizzard Inc (ATVI) – October 1st, 2021

View ATVI Trade

The bearish DailyPlay for Friday, October 1st is Activision Blizzard Inc (ATVI). ATVI is part of the Communications sector that has experienced a 6.4% decline in the last month. 

Technical View

• Recent rally to previous support at $78 with a failed retest indicates further decline
• Very weak Technical Score – 2 out of 10
• Bearish 1M and 6M trends

Fundamental View

• Long term risk to revenue and brand due to backlash from recent discrimination lawsuit
• Tightening supply of key hardware components will likely impact video game sales in the near future
• Earnings: Oct 28 (27 Days)

As this is a Credit Spread, look to take profits at 50% and cut losses at 100%:

• Take Profit: $1.32 Debit
• Stop Loss: $5.30 Debit