The video game industry has matured into more than just games for the classic consoles geared toward the more serious player. With portable devices like smartphones and tablets becoming available to everyone, video game companies have more outlets for content as well as an expanded customer base with those casual gamers.

Last Tuesday, leading game maker Electronic Arts (NASDAQ:ERTS) announced the acquisition of PopCap games, a developer of mobile and social media gaming. The company also raised its guidance for second-quarter results. Things are looking solid for EA, so let’s look at the charts.

On the weekly chart looking back three years, note the following: After falling off a cliff in 2008, the stock price broke out of a multi-year downtrend line this past February and has never looked back since. In May and July, the stock tried and failed to hold above the highs from May 2009 near $23.80.

On the daily chart, we see a clear uptrend that has developed so in 2011 — and now again looks to be tested.

Zooming in even closer, we find that after rallying along with the broader market beginning at the end of June, the stock has now pulled back 50%. Here’s the trade I see: A long entry around last Friday’s closing price of $23.80 accompanied with a stop order near the blue uptrend line and the 61.8% Fibonacci retracement level of currently $22.90 (give it a little room) would work well for a final profit target near $26.

Get Serge Berger’s daily market outlook: Stocks Still Consolidating In Front of Likely Volatility.

Serge Berger is the head trader and investment strategist for The Steady Trader. Sign up for his free weekly newsletter.