When the S.A.M. AI Scanner highlights multiple compression signals on different timeframes, I immediately take notice.

But when those signals appear in a stock showing impressive strength near its highs – that’s when things get really interesting.

That’s exactly what we’re seeing right now in Electronic Arts (EA).

The scanner picked up something special here: multiple squeeze formations developing while the stock tests its upper ranges.

And when I dug deeper into the charts, the technical picture only got more compelling.

With EA demonstrating remarkable strength near its 52-week highs and up 21% year-to-date, this setup has all the characteristics I look for in a potential breakout candidate.

Technical Framework:

Squeeze Alignment

What makes this setup especially interesting is the convergence of squeeze signals across multiple timeframes.

We’re seeing compression develop on both the daily and 130-minute charts – a powerful combination that often precedes significant price movement.

The combo of these squeezes, along with the stock’s location near its highs, suggests substantial energy building beneath the surface.

Think of it like a spring coiling tighter and tighter – the more compressed it becomes, the more powerful the potential release.

The daily timeframe squeeze is particularly noteworthy as it’s forming while price consolidates near resistance.

This type of compression at highs often indicates smart money quietly accumulating positions before a move.

When we add in the 130-minute squeeze alignment, it amplifies our setup’s potential.

In my experience, when these timeframes align like this, the resulting move tends to be more sustained and directional.

The shorter-term squeeze often acts as an initial trigger, while the daily squeeze provides the fuel for a larger move.

EMA Structure

The technical foundation here is rock solid.

Both daily and weekly EMAs are perfectly stacked in bullish formation, creating a strong support structure beneath current price action.

This orderly arrangement of moving averages isn’t just pretty to look at – it’s telling us something important about the underlying strength of this trend.

When we see the 8 EMA riding above the 21, which stays above the 34 and 55, it signals strong institutional participation and sustained buying pressure.

What’s particularly compelling is how price continues to respect these moving averages as support during pullbacks.

Each EMA level acts as a potential bouncing point, giving us clear areas to manage risk while maintaining our bullish bias.

This perfect EMA configuration often precedes significant moves, especially when combined with our squeeze setups.

It suggests that despite the stock being near highs, the underlying trend structure remains healthy and positioned for potential continuation.

Price Action Near Highs

With EA up 21% year-to-date and testing key resistance levels, the current consolidation pattern suggests accumulation rather than distribution.

This type of behavior near highs often precedes continuation moves, especially when supported by our other technical indicators.

Business Overview

Electronic Arts continues to dominate the gaming space with its sports franchises and live services model.

Recent strategic initiatives and strong execution have positioned the company well for continued growth.

Key Catalysts:

• Strong performance in live services segment
• Robust game portfolio pipeline
• Strategic expansion initiatives
• Consistent margin improvement

Your Action Plan:

The technical confluence we’re seeing in EA right now is the kind of setup that demands close attention. When I see:

• Fresh squeeze formations on multiple timeframes
• Price consolidation near 52-week highs
• Perfect EMA structure showing strong trend health
• Decreasing volatility as price coils
• Relative strength in current market conditions

…it tells me a significant move could be brewing.

While I haven’t initiated a position yet, I’m watching this setup carefully for potential entry via call options.

Daily Profits Live subscribers will be notified on when or if I trade it, along with my specific entry and exit targets.

These technical conditions often create the perfect environment for options plays, especially when we see this level of compression near key resistance levels.

If you’d like to learn more about how I find setups like this, click here to learn more about the S.A.M. AI Scanner.