ADBE climbs to highest close since October 3, 2018
Adobe Inc. (ADBE) Technical Analysis Report for Mar 14, 2019 | by Techniquant Editorial Team
Moving higher for the 4th day in a row, ADBE ended Thursday at 267.69 gaining $3.31 (1.25%) on high volume, notably outperforming the Nasdaq 100 (-0.19%). Today's close at 267.69 marks the highest recorded closing price since October 3, 2018. Trading up to $1.74 lower after the open, the share managed to reverse during the session as bulls took control ending the day above its opening price. Closing within the previous day's range, prices missed to decisively move beyond the prior day's trading range.
Daily Candlestick Chart (ADBE as at Mar 14, 2019):
Thursday's trading range has been $4.48 (1.69%), that's slightly below the last trading month's daily average range of $5.14. Things look different on the weekly timeframe, where the market's trading range of the last week has been way above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for ADBE.
One bullish candlestick pattern matches today's price action, the White Candle. The last time a White Candle showed up on Monday, ADBE gained 0.98% on the following trading day.
After having been unable to move lower than 264.13 in the previous session, the market found buyers again around the same price level today at 263.52.
Crossing above the upper Bollinger Band for the first time since February 12th, prices have shown unusually strong upward momentum in the short-term. This might either indicate a potential buying climax after which prices could head back down towards the mean of the Bollinger Bands at 260.00 or signal the beginning of a strong momentum breakout leading to even higher prices.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term. With its 50-day moving average crossing above its 200-day moving average, the stock has entered a so-called "Golden Cross" for the first time since December 13, 2018. Showing increasing upward momentum in the short and medium-term the "Golden Cross" is known to indicate a potential bull market on the horizon.
Buying might accelerate should prices move above the nearby swing high at 269.80 where further buy stops could get triggered. 2018's high at 277.61 is within reach and we might see further upside momentum should Adobe manage to break out beyond.
Among the 10 market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Close to Swing High" stand out. While it is usually interpreted as neutral, it has actually shown to be bullish for Adobe. Out of 833 times, ADBE closed higher 53.18% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the long side has been after 10 trading days, showing a win rate of 61.10% with an average market move of 1.04%.