Today ADBE reached a very important level. I think it's useful to have a look at its chart, because it seems to be a good entry point. Let's see why!
Weekly: In the last two years, ADBE formed a perfect double top. In July it broke down and since then it shaped a perfect consolidation-range (22.7-26) below the neckline of the above mentioned pattern. Until the price is below the neckline, the continuation of this downtrend is threatening. Below 22 the picture is simple: nothing but short. Until ADBE is in this range, graciously we can call the status neutral, although i'd rather call it bearish. But if it could return above the key-level, the perspective is much brighter. Above 26, the next tough level is 30. There can we find many strong resistances.
Below 22.7 further sharp falling is expected. Although 20 may hold the price in this case, but i think, the chance of testing 2009's low would be quite huge. But now, we should keep the gunpowder dry for the optimistic scenario.
Weekly: In the last two years, ADBE formed a perfect double top. In July it broke down and since then it shaped a perfect consolidation-range (22.7-26) below the neckline of the above mentioned pattern. Until the price is below the neckline, the continuation of this downtrend is threatening. Below 22 the picture is simple: nothing but short. Until ADBE is in this range, graciously we can call the status neutral, although i'd rather call it bearish. But if it could return above the key-level, the perspective is much brighter. Above 26, the next tough level is 30. There can we find many strong resistances.
Below 22.7 further sharp falling is expected. Although 20 may hold the price in this case, but i think, the chance of testing 2009's low would be quite huge. But now, we should keep the gunpowder dry for the optimistic scenario.
Daily: ADBE reached the top of the range again (it's the fifth occasion since August), and this time it means touching the top of the falling channel as well. So it's an important level. In the last 4 months this is the very first time when ADBE closes above the 50-day moving average. As we can see below the chart, MACD also gave a buy signal. So the picture is not bad, but there are some things that makes the breakout doubtful.
Despite today's excellent market mood it couldn't exceed 26, and turned down from the resistance (although it closed not too far from it). In the last 5 days it rose 10% without any consolidation, and it means, we can place the stop-loss level fairly far from here.
Briefly: there are positive and negative signs too. It's a good price for opening short positions, because in case of a breakout, we can use tight stop-orders and turn our position to long. The first short-term support is below 24.
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