ADBE ends the day on a bearish note closing near the low of the day
Adobe Inc. (ADBE) Technical Analysis Report for Jun 14, 2019 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, ADBE ended the week -1.39% lower at 274.28 after losing $2.02 (-0.73%) today, slightly underperforming the Nasdaq 100 (-0.42%). Trading $1.18 higher after the open, the share was unable to hold its gains as the bears took control ending the day below its opening price. Ending with a weak close near the low of the day sets a bearish note for the next session.
Daily Candlestick Chart (ADBE as at Jun 14, 2019):
Friday's trading range has been $3.09 (1.12%), that's below the last trading month's daily average range of $5.81. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for ADBE.
Two candlestick patterns are matching today's price action, the Bearish Short Candle and the Black Candle which are both known as bearish patterns.
Prices are trading close to the key technical support level at 272.28 (S1). The market closed back below the 50-day moving average at 275.44 for the first time since June 5th. When this moving average was crossed below the last time on May 31st, ADBE lost -4.38% on the following trading day.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Buying could speed up should prices move above the close-by swing high at 278.96 where further buy stops might get activated. Selling could accelerate should prices move below the nearby swing low at 272.03 where further sell stops might get triggered.
Among the 11 market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Down Close Near Low of Period" stand out. Though it is usually interpreted as bearish, it has actually shown to be bullish for Adobe. Out of 423 times, ADBE closed higher 57.68% 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 65.25% with an average market move of 1.40%.