Adobe ended September 10 at a two-month low, losing more than 11.5% from its July 52-week high. On September 17, after the market closes, the company will report for the past quarter. The market expects revenue to increase by 22.7% (YoY) to USD 2.81 billion, with earnings per share up by 13.9% (YoY) to USD 1.97.
Over the last week, Adobe shares showed a decline in value by 2.23% S&P500 went up by 2.52% within the same period.
The company’s shares started to decline after the prolonged consolidation. Currently, the emitter is testing the support level of 273.00. 281.00 is a “mirror” resistance level. The instrument has the potential to further correction.
Indicators don’t give a clear signal: MA(50) has crossed MA(200), and MACD histogram started to go down. Positions are to be opened from key levels.
Comparing the company’s multiplier with its competitors in the industry, we can say that #ADBE shares are neutral.
Support levels: 273.00, 267.00, 258.50.
Resistance levels: 281.00, 290.00, 300.00.
If the price consolidates below the support level of 273.00, the company’s shares may decline. Potential profits should be locked in by orders at 266.00, 260.00, and 254.00. Stop loss – 280.00.
If the price consolidates above 281.00, one may consider buying #ADBE. The moving potential is aimed at the area of 295.00–300.00. Stop loss – 274.00.
Robert Thomas has over 14 years experience in the investments on the institutional side of markets and has an “insider” view on the markets. In addition, he is an futures day trader that focuses on analyzing fundamentals, specifically earnings reports and technical levels. He has a Masters Degree in Business and Economics.