Current trend

Adobe will publish its Q4 report of the 2017 financial year on Thursday, December 14, after market closing. In the last third quarter the company’s net profit grew by 10% QoQ. Moreover, in the last four report quarters Adobe financial indicator exceeded The Wall Street expectations by 7.8% on average. The success let Adobe stocks grew by more than 69% since the beginning of the year. In the fourth quarter, the key growth driver is the strengthening of Creative Cloud due to the growth of new subscribers’ number, enterprise services architecture implementation and focusing on such high-potential spheres as education.

During the last week Adobe stocks grew by 3.48% against S&P 500 increase by 0.39%.

Support and resistance

Last week the stocks were in correction. Now the technical picture is mixed. The issuer is set within the range of 172.50–180.00. Further correction is not excluded. Indicators do not give a clear signal: the price consolidated between МА (50) and МА (200), which are strong dynamical support and resistance levels; MACD histogram is near the zero line. It is better to open positions from the key levels.

The comparative analysis between the indicators of the company and its competitors suggest that its shares are underpriced.

Resistance levels: 180.00, 186.20.

Support levels: 172.50, 165.00, 157.00.

Trading tips

If the price is set below the level of 172.50, it is better to open short positions. Closing profitable positions is possible at the levels of 169.00, 166.00 and 163.00. Stop loss is 176.00.

If the price is set above the resistance level of 180.00, the growth to 186.00–190.00 is expected. Stop loss is 176.00.

Implementation period: 3–4 days.


TimeframeDay's Range
RecommendationsSELL STOP
Entry Point172.40
Take Profit169.00, 166.00, 163.00
Stop Loss176.00
Support levels157.00, 165.00, 172.50, 180.00, 186.20

Alternative scenario

RecommendationsBUY STOP
Entry Point180.10
Take Profit186.00, 190.00
Stop Loss176.00
Support levels157.00, 165.00, 172.50, 180.00, 186.20
Adobe Systems Inc. (ADBE/NASD)

The material published on this page is produced by the Claws&Horns Company and should not be considered as the provision of investment advice for the purposes of Directive 2004/39/EC; furthermore it has not been prepared in accordance with legal requirements designed to promote the independence of investment research and is not subject to any prohibition on dealing ahead of the dissemination of investment research.

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