Electronic Arts - EA - close: 22.65 change: +0.90

Stop Loss: 21.90
Target(s): 25.75
Current Gain/Loss: unopened

Entry on May -- at $--.--
Listed on May 23, 2013
Time Frame: 4 to 6 weeks
Average Daily Volume = 6.0 million
New Positions: Yes, see below

Company Description

Why We Like It:
EA was definitely bucking the market's weakness today. True, shares did gap down this morning but the dip was minor and traders quickly bought the dip near the bottom of EA's current trading range. The stock managed to reverse into a +4.1% gain.

Shares have been consolidating sideways the last two weeks as the stock digests its post-earnings gains from May 8th. The company reported earnings on May 7th and misses estimates. Management guided lower for the first quarter but they guided higher for 2014. Investors decided to ignore the Q1 warning and shares soared.

Currently EA is hovering just below resistance near $23.00. I am suggesting a trigger to launch bullish positions at $23.10. If triggered our target is $25.75. However, that is a slightly aggressive target. The $25.00 level has been resistance in the past and could be resistance again.

Trigger @ 23.10

Suggested Position: buy EA stock @ (trigger)

- (or for more adventurous traders, try this option) -

buy the Jul $25 call (EA1320G25) current ask $0.50

Annotated chart: