Adobe Systems (NASDAQ:) has been trading in a narrow consolidation since its powerful “cloud news” breakout back on Aug. 26.
In fact, Adobe spent the entire next three months inside the August range. Ahead of next week’s earnings report (Dec. 9) shares have firmed up nicely and appear to be headed for an upside breakout. A close above the November peak ($502.50) would violate the upper band of the three-month consolidation. With shares having fully worked off September’s extremely high daily MACD reading (overbought) Adobe has room to run on the upside.
On the downside, a close back below $460 would violate last week’s low, indicating a more drawn out consolidation is ahead before Adobe can mount a fresh rally leg.
Note: We are long ADBE in some managed accounts.
You can read Gary S. Morrow’s original post here.
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