Adobe Systems has been trading in a narrow consolidation since its powerful “cloud news’ breakout back on August 26, https://twitter.com/GarySMorrow/status/1298711674761834498?s=20. In fact ADBE spent the entire next three months inside the August range. Ahead of next week’s earnings report(Dec. 9/PM) shares have firmed up nicely and appear to be headed for an upside breakout. A close above the November peak($502.50) would violate the upper band of the three month consolidation. With shares having fully worked off September’s extremely high daily MACD reading(overbought) ADBE has room to run on the upside. On the downside, a close back back below $460 would violate last week’s low indicating a more drawn out consolidation is ahead before ADBE can mount a fresh rally leg.
We are long ADBE in some managed accounts.