Saad Ullah
Electronic Arts (EA) stock tumbled 17% on Thursday after the company cut its full-year bookings outlook. We analyze crucial support and resistance levels for EA's next moves.
EA Stock (EA) Faces Sharp Decline After Booking Outlook Cut
Shares of Electronic Arts (EA) experienced a dramatic 17% drop on Thursday, closing at $118.58—its lowest level since September 2023. This steep decline followed the company’s revision of its full-year bookings guidance for fiscal 2025. EA now expects bookings of $7 billion to $7.15 billion, down from its earlier forecast of $7.5 billion to $7.8 billion.
The reduction comes amid slowing demand for EA's sports games, particularly its Global Football franchise, which saw decelerated growth in the December quarter after two consecutive years of double-digit acceleration. This slowdown follows the launch of two soccer games without FIFA branding after EA ended its partnership with the soccer governing body in 2022.
EA shares are now down 15% over the past 12 months. Below, we delve into technical analysis to identify key price levels that could guide EA’s future movements.
EA Stock (EA): Multi-Year Uptrend Line Break
Thursday’s decline marked a significant technical breakdown for EA stock, as it slipped below a multi-year uptrend line. The move was accompanied by the highest weekly trading volume since January 2023, underscoring strong selling pressure.
This breakdown raises questions about EA's ability to recover in the near term, particularly as the stock remains vulnerable to further downside. Traders and investors are closely watching specific support and resistance levels to assess EA’s next steps.
Crucial Support Levels for EA Stock (EA)
The first key support level to monitor is around $110. This horizontal line connects several significant price points on EA's chart from February 2019 to March 2023. A breakdown below this level could lead to a test of the psychological $100 level, where investors may find buying opportunities.
If the decline deepens, EA stock could revisit support near $87, a region marked by pronounced swing lows in July 2019 and March 2020. This area could attract bargain hunters looking for a longer-term opportunity.
On the upside, investors should focus on the $144 level as a potential area of resistance. This zone aligns with a retest of the multi-year uptrend line and coincides with peaks from August 2020. Breaking above this resistance would signal renewed bullish momentum, but the path to recovery remains uncertain.
Outlook for EA Stock (EA)
EA’s steep sell-off highlights the market's reaction to its revised guidance and slowing demand for its sports franchises. While technical support levels may provide opportunities for a rebound, the stock’s future will likely depend on its ability to stabilize bookings growth and renew investor confidence.
For now, traders should keep a close eye on the $110 and $100 support levels, as well as the $144 resistance area, to gauge EA stock’s next move.
Saad Ullah
