Here’s your trade on Adobe $ADBE – February 5, 2024
This is Scott with your Chart of the Day. A really quick one here tonight from Adobe ( NASDAQ: ADBE ).
Adobe ( NASDAQ: ADBE ) is in a nice uptrend and above all the major moving averages. It had a bit of a dippity do down under the 50-day, the 21-day, and the 8 EMA here in early January. But since it has recovered and recovered quickly, and that’s what I like. I’m fine with a stock going under the moving averages, but typically, I want to see it get back above and really firm up quickly.
This did that over a series of just a couple of days. It firmed up, and then a nice power move here through that 50-day moving average. A little bit of a back test and then it just climbed up that daily 8 exponential period moving average. Now we are consolidating near some previous highs. If I zoom out here and fix the chart up a little bit, you can see this previous resistance zone back here from 2021, and it is now an area or resistance.
What I want to see from Adobe ( NASDAQ: ADBE ) is a move through that level to the upside this way. Coming on higher than average volume for a potential retest of the highs up here at around $700.00. So that would be just a bit of a swing target, but this is the kind of trade that I think you want to be patient with, and just let it ride up that 8 exponential period moving average.
If you get a close under the 8-day, maybe you want to step away and wait for it to recover. But I think this could be a Steady Eddy trade into earnings, which aren’t until March 14th. That’s what I’m looking for from Adobe ( NASDAQ: ADBE ), a little bit of a march up that 8-day exponential period moving average. And maybe a test of 700.00 just before earnings in March.
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