This Bottom Is Setup To Create Triple Digit Gains

When I covered this stock a few weeks ago it immediately shot higher as it broke above its 50-day moving average.

Now it’s retraced back to good support, and it’s ready to shoot higher again.

If you’d like to buy a stock (or call options) on an explosive low base pattern read below.

Activision Blizzard (ATVI) inched above a 4-day consolidation pattern on Wednesday.

If it continues higher, and trades over $48.20, a breakout that could lead to a quick move up to $53 and a 100%+ gain with the right trade.

The chart also has a good stop loss level under $46.25.

If this breakout move happens in the next 30 days, the August 55 calls will likely double in price.

A 100% gain sounds good, but if such a move happens, I’d look for the move to continue even further. This is why I mention the August expiration.  

The reason for my optimism for a breakout that could move the stock 20%-30% is based on the duration of the base, and gap down from $62 to $57.

If ATVI clears $52 then $57 looks like a likely level, and from there the next step is to fill the gap at $62.

Trade smart,

Rick Nartarian, Chief Investment Officer
The American Investor Daily