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.