ADBE - Short Term Pressure

3 Nov 2020

ADBE

Although fundamentally strong ADBE has recently come under selling pressure despite of what I believe to be strong fundamentals of the stock. However the 2020 rebound rally might have led the stock too far too quick and its time for a bit of a breather.

Two broken triangle/wedge formation on the downside and a strongly negative MACD suggest pressure isn‘t likely to ease just now and we might see a test of the 200 EMA around $420

Technicals

• Strongly negative MACD
  
• Two broken traingle/wedge formations within the last weeks
  
• Formation of a bearish channel
  
• Negative day volume > positive day volume for past two weeks
  
• No real support levels in sight appart from the 200 EMA which is around $420
  
• A point could be made for a negative Elliot Wave pattern, however my experience in Wave-Theory is to limited for practical use as of now.
  

Thus I will short the stock around current levels with a tight stop-loss to increased vol. around US elections.

Sell Limit $445
Stop Loss $450
Take Profit $420
R/R ratio 5:1

In the long run I am still positive on ADBE and will seek to buy the stock at lower levels once a trend reversal starts building.

Any comments, suggestions and discussions are welcome!

***The above is an expression of my personal view and should not be considered investment advice. If you trade, always remember, risk management is key***

6 Nov 2020

Nota

Short order not filled.

Trades back up inside wedge. Looking for a breakout from here should the overall sentiment in the market maintain positive momentum.

No trades open atm, waiting for clearer signals