On Monday, CNBC reported that Electronic Art’s (EA) new ‘Star Wars’ game is so unpopular a developer is apparently getting death threats.
EA has come off its August high and moved lower over the last three months. The loss of momentum is reflected in the bearish crossover on the moving average convergence/divergence oscillator, and Chaikin money flow reflects distribution over that pullback period.
Despite the recent vitriol on the internet regarding the release of the “Star Wars” game, the stock has held up well this week. The continued integrity of the zone of support between the $105 and $110 level, which contains the rising 40 week moving average, could be a major factor in determining the intermediate term direction of the stock price.
A bounce from this area could set the stock back on trend while a breakdown could accelerate the downturn.