Tuesday, January 6, 2015

King Digital Entertainment PLC (NYSE: KING)

King Digital Entertainment plc, an interactive entertainment company, develops and publishes casual games on Web and mobile platforms. The company offers approximately 190 fun titles in over 200 countries through its king.com and royalgames.com Websites; Facebook; and mobile distribution platforms, such as the Apple App Store, Google Play Store, and Amazon Appstore. King Digital Entertainment plc is based in Dublin, Ireland.
Take a look at the 1-year chart of King Digital Entertainment PLC (NYSE: KING) below with my added notations:
1-year chart of King Digital Entertainment PLC (NYSE: KING)
Over the last 2 months KING created a key trendline of support (blue) and that line is also the “neckline” support for the stock’s head and shoulders (H&S) reversal pattern. Above the neckline you will notice the H&S pattern itself (red). Confirmation of the H&S would occur if KING breaks its trendline support.
The Tale of the Tape: KING has formed a head & shoulders pattern. A long trade could be made at $15 with a stop placed below that level, but ideally, the pattern implies a short trade to be entered on a break below $15 instead.
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