Choose A Better Gaming Stock

A glance at the StockTwits heat map for the technology sector shouldn't come as a surprise to anyone. Apple (AAPL) is far and a way the largest and with Blackberry (BBRY) breaking out it is next. But focus in on the two gaming stocks in the blue circles. Seems like you could fit 10 Activision Blizzard, ATVI, inside the Zynga, ZNGA, box. It is ten times more popular, but should it be?


The Zynga chart below shows a bit of a rounding bottom for the optimist. The most recent activity is a descending triangle with support at 3.04. Note that is has relatively flat Simple Moving Averages (SMA). It also has a Relative Strength Index (RSI) that is flat at the midline, and has been so for nearly 2 months with a Moving Average Convergence Divergence indicator (MACD) that is running flat. It is in consolidation and showing no signs that it will come out soon. On the other hand, the Activision Blizzard

chart has some action to it. A gap up in February led to consolidation in an expanding wedge. It recently reconnected with the rising 50 day SMA, and is running higher. In fact, the 100 and 200 day SMA are also moving higher, and the price is above all of them. The RSI is moving higher in bullish territory as it touches the top of the wedge at new highs.

The MACD signal line is turning back up, and crossing to positive after pulling back from an extreme level after the break out. This stock is setting up for another break out higher. Look at that heatmap again. Which one of those boxes do you think should be bigger?

The information in this blog post represents my own opinions and does not contain a recommendation for any particular security or investment. I or my affiliates may hold positions or other interests in securities mentioned in the Blog, please see my Disclaimer page for my full disclaimer.

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