Activision Blizzard Inc. (ATVI) shares moved slightly higher on Monday after Oppenheimer's bullish note last week. Oppenheimer remains bullish on video game publishers – including Take-Two Interactive Software, Inc. (TTWO), Electronic Arts, Inc. (EA) and Activision Blizzard – despite near-term industry headwinds. In particular, the analyst believes that Activision's flagship "Call of Duty: Black Ops 4" launch in October could be a big catalyst and drive revenue growth.

Many video game publishers moved lower across the board in late July and didn't start to recover until late August, with the exception of Take-Two Interactive. The primary catalyst behind the decline was weak e-sports viewership on Twitch and ESPN/Disney XD, but a 14% improvement in video game sales in July helped investors improve their outlook. (See also: How the Video Game Industry Is Changing.)

Technical chart showing the performance of Activision Blizzard, Inc. (ATVI) stock

From a technical standpoint, Activision Blizzard stock rebounded from pivot point support at around $72.00 to retest its reaction highs near the 50-day moving average at $74.50. The relative strength index (RSI) appears neutral with a reading 55.95, and the moving average convergence divergence (MACD) remains in a bullish upswing – lending support to the bullish move.

Traders should watch for a breakout from these levels to R1 resistance at $75.84 and eventually R2 resistance at around $79.50. If the stock retreats from these levels, traders could see a move back down to S1 and reaction support levels at around $68.30. In the meantime, traders should watch for some near-term consolidation between $71.00 and $75.00 before a breakout takes place. (For more, see: Activision Blizzard Stock Shows Bullish Trading Activity.)

Charts courtesy of The author holds no position in the stock(s) mentioned except through passively managed index funds.