Since Electronic Arts (NASD:ERTS) is the Nasdaq loser of the day and is scheduled to release earnings Thursday, lets check its chart.
Electronic Arts Daily Chart
ERTS has had a nice 24-point run up, since its December 16th low. The ride up has been a little volatile, with an average true range reading of 3.6 for the past 90 days. After completing a triple bottom, the 50-dma has done a good job of supporting any pullbacks. The one time it failed, the 200-dma stepped up and saved the day. If the 50-dma fails again, ERTS could fall to the 38.2% retracement bracket at $50.51. Adding to that possibility is some bearish divergence on the MACD.
Electronic Arts Point and Figure Chart
Looking at the point and figure chart for Electronic arts reveals a triple bottom sell signal. The bearish price objective off of that signal is $45. The $45 level would correspond to the 61% retracement level on the bar chart, and the March lows on the P&F chart. The first support test for ERTS is the bullish support line, which the current column of Os is pegged at.