Key Takeaways
- Shares in Electronic Arts traded tumbled Thursday after the video game publisher slashed its bookings outlook for fiscal 2025 amid softening demand for its sports games, including its prominent soccer franchise.
- The stock broke down below a multi-year uptrend line during Thursday’s steep drop on the highest weekly trading volume since January 2023.
- Investors should watch crucial support levels on EA’s weekly chart around $110, $100, and $87, while also monitoring a key overhead area near $144.
Shares in Electronic Arts (EA) traded sharply lower on Thursday after the video gamer publisher slashed its full-year bookings outlook amid softening demand for its sports games, including its prominent soccer franchise.
EA revised its net bookings guidance for fiscal 2025, which runs through the end of March, to between $7 billion and $7.15 billion from its earlier forecast of $7.5 billion to $7.8 billion. The company said growth in its Global Football business had slowed in the December quarter after two consecutive years of double-digit net bookings acceleration.
The warning comes after the publisher’s latest two soccer games have hit shelves without FIFA branding following the termination of a longstanding partnership with the world soccer body in 2022.
EA shares fell 17% to $118.58 on Thursday, its lowest closing level since September 2023. The stock is now down 15% over the past 12 months.
Below, we take a closer look at the EA’s weekly chart and apply technical analysis to identify key price levels that investors may be watching.
Multi-Year Uptrend Line Breakdown
Since setting a record high in mid-November, EA shares have undergone a steep retracement, with the stock breaking down below a multi-year uptrend line during Thursday’s steep drop.
Importantly, the move occurred on the highest weekly trading volume since January 2023, indicating strong selling conviction.
Let’s identify three crucial levels where EA shares could encounter support and also point out a crucial overhead area that may provide resistance during future upswings.
Crucial Support Levels to Watch
The first lower level to watch sits around $110. Shares could encounter support in this area from a horizontal line that connects several prominent peaks and troughs on the chart between February 2019 and March 2023.
Selling below this level opens the door for a decline to the crucial $100 level, a location on the chart where investors could look for buying opportunities near the phycological round number and the upper level of a consolidation period that formed from May to September in 2019.
A deeper correction in the stock could see the price revisit lower support around $87. Bargain hunters may look to accumulate shares in this area near pronounced swing lows that formed on the chart in July 2019 and March 2020.
Key Overhead Area to Monitor
Finally, during upswings in EA’s stock, investors should keep track of the $144 area. The shares may run into overhead resistance in this region on a retest of the multi-year uptrend line, which also closely corresponds with a range of peaks on the chart that date back to August 2020.
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