Adobe Systems has been around for a long while, which is a testament to its unique products and positioning. The software, some of which is free to users, is world-class, and the company easily competes with some of the biggest brands in the technology sector, including Oracle, Microsoft and SAP. One of their advantages is that they know the cloud is their future, and they are making the transition pay off. Case in point: Their earnings report last week confirmed that their growth prospects are solid.
However, after last week’s earnings report, their stock dipped when the “hot money” fled. That set up a nice entry point for options traders. The stock moved sideways and then exploded to a new all-time high on Monday, June 22. Apparently the stockholders last week were not watching the technicals! The price action all day was impressive, but now we see volume surging to levels not seen during an “up session” since May. The MACD has issued a buy signal, and price has accelerated above the upper bollinger band, setting up a potential fat tail trade (the setup is ideal – we just need some follow through).
Explosive Options subscribers jumped in on this Tuesday 6.23 with calls at the Aug 82.5 strike.
Adobe Systems Chart Analysis
Take a deeper dive into the chart action (Nasdaq: ADBE) and learn how to read the technicals and my analysis as I mark up our chart of the week.
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About Adobe Systems
Adobe Systems Incorporated is a diversified software company worldwide. It operates in three segments: Digital Media, Digital Marketing, and Print and Publishing. The Digital Media segment provides tools and solutions that enable individuals, small and medium businesses, and enterprises to create, publish, promote, and monetize their digital content. This segments flagship product is Creative Cloud, a subscription service that allows customers to download and install the latest versions of its creative products. This segment serves traditional content creators, Web application developers, and digital media professionals, as well as their management in marketing departments and agencies, companies, and publishers. The Digital Marketing segment offers solutions for how digital advertising and marketing are created, managed, executed, measured, and optimized.