ADBE - Short Term PressureNASDAQ: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***
