Activision Blizzard plunges in premarket amid potential FTC lawsuit

Activision Blizzard (ATVI.US) stock fell over 3% in premarket after Politico reported yesterday that the Federal Trade Commission (FTC) will likely to file an antitrust lawsuit  in order to block Microsoft’s (MSFT.US) $69 billion acquisition of the videogame maker. FTC officials were skeptical of Microsoft’s assurances that takeover deal would not produce monopoly power in the gaming industry.

Activision Blizzard (ATVI.US) stock pulled back sharply lower after sellers failed to break above long-term downward trendline and 200 SMA (red line). If current sentiment prevails, major support at $72.00 which coincides with 50.0% Fibonacci retracement of the upward wave launched in February 2019. Source: xStation5