Sep 17, 2020, 11:04:34 AM
Adobe Systems Inc. (ADBE/NASD): general review
Current trend
Adobe shares are trading near a monthly low, losing more than 11% in value from a 52-week high on September 2. This Tuesday, the company posted quarterly results above The Wall Street's expectations. Revenue rose by 14% (YoY) to USD 3.23 billion; earnings per share increased by 25.4% (YoY) to USD 2.57. In addition, Adobe is forecasting revenue growth to USD 3.35 billion for the current quarter.
Over the last week, Adobe shares showed a decline in value by 0.72%. S&P 500 index went down by 0.40% during the same period.
Support and resistance
The issuer has stabilized after a protracted growth. At the moment, the #ADBE shares are consolidating. Support and resistance levels are 460.00 and 504.00 respectively. Company's shares technical correction is possible in the near future.
Indicators do not give clear signals: the price crossed MA (50); the MACD histogram is near the zero level. Positions are to be opened from key levels.
Comparing company's multiplier with its competitors in the industry, we can say that #ADBE shares are neutral.
Resistance levels: 504.00, 536.00.
Support levels: 460.00, 435.00, 415.00.
Trading tips
If the price consolidates above 504.00, one may consider buying #ADBE. Potential profits should be locked in by orders at 545.00, 580.00 and 620.00. Stop-loss – 464.00.
If the price consolidates below 460.00, the company's shares are expected to correct. The movement potential is aimed in the area of 390.00–350.00. Stop-loss – 500.00.
Implementation time: 3 days.
Scenario
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Timeframe
Intraday
-
Recommendation
BUY STOP
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Entry Point
504.00
-
Take Profit
545.00, 580.00, 620.00
-
Stop Loss
464.00
-
Key Levels
415.00, 435.00, 460.00, 504.00, 536.00
Alternative scenario
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Timeframe
Intraday
-
Recommendation
SELL STOP
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Entry Point
459.90
-
Take Profit
390.00, 350.00
-
Stop Loss
500.00
-
Key Levels
415.00, 435.00, 460.00, 504.00, 536.00
