Adobe stock: buy or sell
Jan 27th, 2021
Adobe stock brief
- Counting on Tuesday, it's been 5 consecutive sessions in positive for Adobe. Price closed on Tuesday at $476.28 after slightly moving a 0.60%.
- Price is drawing a scaled uptrend since last November with higher tops and higher bottoms. Up to date, price marked a 8.51% gain since the beginning of this rally
- Adobe Inc. operates as a diversified software company worldwide.
Should I buy Adobe stock?
Even if you are a experienced or a novel trader, best trading results come from using an investing strategy that never leaves to random or subjective opinions when is the best moment to buy or sell stocks. Trading strategies are meant for helping you in the decision process of what stocks to pick and when is the best moment to buy them. At Stocks2.com, we like to use very simple but trusted and powerful trend following trading strategies. Simple things usually work the best
Is $ADBE stock a buy?
In the current situation of Adobe there is just one buy setup eligible:
Uptrend buy setup
Adobe stock is in an uptrend since last November that so far has marked a gorgeous 9.00% gain. Price marked a pull back in this uptrend at $453.34 on January 19, and since then it bounced off a 5.06%. Now, it's only 6.43% away from breaking out over its last top and resume the uptrend. The new buy point is therefore at $506.92. If you decide to enter this trade, the suggested stop loss is at $456.23
|Buy setup||Buy point||Stop loss||Risk|
|Uptrend buy setup||$506.92||$456.23||10.00%|
Should I sell Adobe stock?
When you are a novel trader and you own stock shares with some profit, it's really hard to decide the correct moment to sell and get your benefits. Trading strategies prevent us from making rash decisions based on our moods or the buzz that surrounds the market. When selling, as well as buying, detailed strategies are very simple to follow but are only valid for selling stocks you already own, not for selling short Adobe stock
A guiding principle is that you should not hold a trading operation that produces greater losses than those expected upon purchase. The moment to sell your stock always has to be dictated by the stop-loss (automatic or manual)
Is it time to sell Adobe stock?
In the current situation of Adobe there is not any eligible sell setup, so Adobe stock holders with operations in profit can keep their positions
In the last 30 days, 2 ratings were published for Adobe. General sentiment is bullish, with 2 out of 2 publishing optimistic outlooks
|Jan 15th, 2021|
|Stifel Nicolaus|| |
|Jan 21st, 2021|
|The Goldman Sachs Group|| |
Adobe stock analysis
Adobe shares started an uptrend last November, and grew an amazing 8.51%. The chart shows higher highs and higher troughs, and along the way provided some buying opportunities for those who wanted to trade in. Latest pullback was on January 19, when price bounced at $453.34. Now, the price trades in a consolidation between its last top ($506.92) and its last bottom ($453.34)
Supports and resistances
The current resistance levels are:
The current support levels are:
Since the price broke down the lower band on January 19, the price bounced off by 5.06%
Relative strength index
The has been between the overbought and oversold zones for some weeks, and therefore, without this indicator really helping us to make any decisions.
Adobe stock price history
Adobe went public priced at an adjusted price1 of $0.00 on Aug 1986. Since then, ADBE stock has risen by -, with an average of 0.00% per year. An investment of thousand dollars on Aug 1986 would have a value of $inf nowadays.
1: Adjusted price after possible price splits or reverse-splits
Price target for Adobe stock
How much a stock will be priced tomorrow or next week is quite unpredictable. However, many stock price predictions are posted every day by banks, financial institutions and independent analysts.
The following table shows the price forecasts posted by analysts for the last 30 days. If you are a small trader you don't have to trade based on these forecasts.
In the previous month we couldn't find any price target posted for Adobe stock.
|Brokerage firm||Price target|
|Jan 15th, 2021|
|Stifel Nicolaus||Not available|
|Jan 21st, 2021|
|The Goldman Sachs Group||Not available|
Earnings and financials
In mid-December, Adobe ($ADBE) hosted the financial event and released the report. Adobe beat Wall St estimates and reported of $2.81, that is a 5.64% surprise versus the previous forecasts of $2.66. Despite this, reported revenues of $3.4 billion were in line with Wall St. forecasts.Same quarter one year ago, reported EPS was $2.29, so recently posted EPS means an improvement of 22.71%. Sales skyrocketed a 14.44% on an annualized basis in the , from $29.9B to $34.2B last quarter.
Adobe ($ADBE) will host the quarterly earnings call next March. Wall Street estimates of $2.78, compared to Q4 that was $2.81.
Disclaimer:The thoughts given in this article are personal and not recommendations for you to buy or sell shares. The author of this paper does not know the particular situations of the reader, his or her financial statements or what is in his or her best interest at any given time. All users should speak with their financial advisor before buying or selling any securities Viewpoints are published for education motives only
|Tuesday, January 26th, 2021|
|Day range||$467.76 - $477.22|
|Average true range||$14.28|
|50d mov avg||$479.43|
|100d mov avg||$481.57|
|200d mov avg||$447.01|
|Earnings date||March 11th, 2021|