Trade of the Day
Adobe Inc (NASDAQ: ADBE)
(Current Price: US$486.18) – TECHNICAL BUY
Buy price: US$486.18 Stop loss: US$468.00 (-3.74%)
Take profit 1: US$522.00 (+7.37%) Take profit 2: US$550.00 (+13.13%)
(1) & (2): Adobe Inc broke out of a descending wedge following a double-bottom at the US$462 level, which provides a bullish signal.
(3): The Moving Average Convergence Divergence (MACD) & Relative Strength Index (RSI) technical indicators support the bullish view, with bullish divergence signals while the double bottom was formed and increasing momentum thereafter.
We expect the price to continue its bullish momentum towards Take profit level 1 at US$522.00 to retest a previous swing high resistance level in March 2024.
The price could then trade higher towards Take profit level 2 at US$550.00, retesting a higher previous support level that became resistance in March 2024.
Expected timeline of the trade is 1-8 weeks from the date of report issuance.
Our research team has a fundamental recommendation of “REDUCE” with a target price of US$465.00.
I analyze the stock market and conduct technical analysis to provide investment recommendations. I look forward to having a conversation with you in our in-house seminars and presentations to identify good risk-reward trading strategies together. I graduated from Nanyang Technological University with a Bachelor of Accountancy (Honours).
