For about four months, Adobe was performing like a champ. Pullbacks were shallow, money flow was very strong and relative strength was simply amazing. Given the lead this company has over its competitors, it was no surprise to see this name keep hitting all-time highs.
When stocks came off their sugar high recently, so did Adobe. However, the stock only dropped about 20%, putting it just above the reliable 100ma. If this correction is over, we may see this stock shift into a higher gear soon.
Even on solid volume, the name is facing headwinds from the next level of resistance – the 20 ma. It will be tough to cross that line. If/when it does, it will hit new all-time highs in no time at all. Earnings are out soon, which could serve as a catalyst.
Adobe Chart Analysis
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Adobe is an American multinational computer software company headquartered in San Jose, California. It has historically focused upon the creation of multimedia and creativity software products, with a more recent foray towards digital marketing software.