I rarely (read never) write about a symbol just like that but this week, following the Wallstrip show, I have done a little digging around on the symbols covered on the show. So for Thursday October 19th, I looked at ADBE and decided to post on it.
At the risk of embarassing myself but because I need to practice, I am posting my ADBE commentary (solely based on the charts) before I read the other blogs and head over to Wallstrip Conversations to see everyone’s opinion. I own no ADBE and do not plan on buying any.
Although there is not enough indication of a reversal to sell short, I would not get into a long ADBE position at this point by fear of it being oversold at the moment. Although the price is trending up, the volument has started declining showing less and less support for the trend. It has basicaly been a consolidation since the 10% gap up on positive earnings news on 9/15/06. I would not be surprised if broke the sideways action downwards soon to find a decent support level. I would expect to see, first, a pullback to the lower channel or around 36.50. Once the price dips below that 36.50 level, it should start a downtrend.