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ADBE

Adobe: One last round of volatility before the new bull run.Adobe Inc is pulling back inside a 1D Channel Down (MACD = -0.030, RSI = 51.065, Highs/Lows = 0.0000) after the late April High. Having made a Golden Cross formation in mid March, is waves a long term buy signal. But on the shorter term a tough phase is expected where the 1D MA200 should be tested again, most likely providing the necessary support for the new long term bull cycle. At least this is what happened on the last occurrence of the Golden Cross in in 2012. Golden Cross, then a market Top, same break below the MA50 inside a Channel Down and multiple tests of the MA200 which eventually held. Our long term TP for Adobe is 310. ** If you like our free content follow our profile (www.tradingview.com) to get more daily ideas. ** Comments and likes are greatly appreciated.
NASDAQ:ADBE
by InvestingScope
THE WEEK AHEAD: ADBE, COST EARNINGS; OIH, XOP, UNG DIRECTIONALSPersonally, I'm not doing a ton here beyond looking at cleaning up remaining December cycle setups and evaluating whether there are poo piles that should be looked at for the taking of tax loss in the margin account before year's end. Nevertheless, here's an outline of what's potentially playable in the coming week ... . ADBE (81/49) announces earnings on Thursday the 13th after market close. The 20-delta, January 18th 210/270 short strangle is paying a whopping 8.05/contract at the mid price, with the 25-delta January 18th 215/220/265/270 paying greater than one-third the width of the wings at a mid price of 2.13. Markets are showing quite wide at the moment, particularly in the defined risk setup, however, so it may prove unattractive at New York open from a liquidity standpoint. COST (76/31) also announces on Thursday after market close, but the background implied isn't generally what I'm looking for in an earnings-related volatility contraction play (generally, >50% is where I draw my "picky line"). On the exchange-traded fund front, petro leads the pack, with OIH rank/implied metrics coming in at 95/47, XOP at 79/44, and UNG at 72/86. With OPEC reaching an agreement late last week as to production cuts, I lean toward bullish assumption setups with time to work out/reduce cost basis, since it will take awhile for any cuts to appear in the pipeline. For example: an XOP June/Feb 25/34 upward call diagonal,* 6.55 debit/contract, break even at 31.55 versus 31.54 spot, max profit on setup of 2.45, 72.8% debit paid/spread width ratio. I'm already in a similar OIH bullish assumption setup, which is proving to be a "pulled the trigger" too soon type of thing. The back month in the OIH setup is in April, so I've still got time to reduce cost basis and for the trade to work out in some fashion, even though it's a bit of a rough sled here. With UNG in particular, I continue to look at a bearish assumption seasonality play, but markets on any given setup have been ugly wide, no matter what type of setup I seem to look at, and lack of liquidity is not your friend when doing an options setup. For broad market premium sellers: SPY (47/30), IWM (78/25), QQQ (69/27). * -- Buy the June 25, sell the February 34.
AMEX:SPY
by NaughtyPines
Bears eyeing ADBE divergenceADBE has been a beast for a long time, but there are signs the bulls may be exhausting. The daily chart is looking toppy with upper wicks of profit taking and clear resistance at 272.50, and a potential bearish reversal Head & Shoulders pattern forming on the daily. The support to break is 257 to confirm the pattern. The daily chart is setting up minor RSI bearish divergence and pretty significant MACD bearish divergence. This is one I'm going to wait for to come to me. Bearish RSI and MACD divergence on the weekly can be seen going back to November 2017 and the odds are always against the bear standing in front of a bull stock at all time highs. Any bears who took this short at the first sign of the divergence have long become insolvent.
NASDAQ:ADBEShort
by McGuireTO
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