Electronic Arts(ERTS) Gaining on Competitors

Posted by barkand on July 5, 2011 under Relative strength | Be the First to Comment

Shares of Electronic Arts (ERTS) finally kicked into bullish mode last winter, and haven’t looked back. Prices are at levels not seen since the crash of 2008. Although if you look at the far left hand side of the chart below, you can see there is a long way to go to reach pre-crash highs.

The first two sub-charts below compare the price performance of ERTS relative to Take Two (TTWO) and Activision (ATVI) respectively. We see that ERTS had been underperforming both for quite some time. However, for the last half year, ERTS has been the best of the three.

On an absolute basis, the shares have held above the 20-week moving average ever since last winter’s breakout. It is not clear whether ERTS has enough energy to get back to the $40s. For now, though, we see no reason for the current uptrend to come to an end.