ADBE still stuck within tight trading range
Adobe Systems Inc (ADBE) Technical Analysis Report for Aug 10, 2018
Moving lower for the 2nd day in a row, ADBE ended the week 0.17% higher at 253.70 after losing $0.10 (-0.04%) today. Closing within the prior day's range, prices failed to decisively move past the previous day's trading range in a lackluster session.
Daily Candlestick Chart (ADBE as at Aug 10, 2018):
Friday's trading range was $3.45 (1.37%), that's below last trading month's daily average range of $5.35. Things look different on a weekly scale, where volatility is way below the markets average with the monthly volatility being slightly below average. Prices continued to consolidate within a tight trading range between 251.50 and 255.75 which it has been in now for the last trading week.
Unable to break through the key technical resistance level at 254.72, the stock closed below it after spiking as high as 254.95 during the day. The failure to close above the resistance could increase that levels importance as resistance going forward. After spiking up to 254.95 during the day, the market found resistance at the 20-day moving average at 254.71.
Although the share is currently in a short-term down trend, this might just be a correction, as the medium and long term trends are both positive.
Buying could speed up should prices move above the close-by swing high at 255.75 where further buy stops might get triggered. With prices trading close to this year's high at 263.83, upside momentum could accelerate should Adobe Systems be able to break out to new highs for the year.