Our Stock of the Day / ATVI

Today, we have a long setup to share. Here you will see a full explanation of the logic behind it.

a) We always start on the weekly chart; we want to understand the main context.


b) There we can see that the price has broken the previous all-time highs, and after that, a massive consolidation started

c) Now, on the Daily chart, we can see that the consolidation is a clear ABC pattern (FLAG structure), which is considered a bullish pattern

d) Classic chartism would also say that we can see a CUP and HANDLE structure, which is also a bullish structure

e) Setup configurations: Entry is above B and the previous All-time highs zone. The stop is below C. Take profit is on the last Fibonacci Extension. Break-even is on the first Fibonacci Extension. Risk Rewards Ratio 1.55

f) We will risk 1% of our capital on this trade

g) We will cancel the setup if the price goes below C

h) Remember: Trade Safe, protect your capital, and always understand what you are doing