ADBE breaks back above 200-day moving average
Adobe Inc. (ADBE) Technical Analysis Report for Mar 26, 2020 | by Techniquant Editorial Team
ADBE finished Thursday at 322.67 gaining $16.76 (5.48%) on low volume, slightly underperforming the Nasdaq 100 (5.72%). The bulls were in full control today, moving the market higher throughout the whole session. Closing above Wednesday's high at 317.65, the share confirmed its breakout through the previous session high after trading up to $6.78 above it intraday.
Daily Candlestick Chart (ADBE as at Mar 26, 2020):
Thursday's trading range has been $18.52 (6.05%), that's below the last trading month's daily average range of $24.29. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently significantly higher than usual for ADBE. Prices continued to consolidate within a tight trading range between 287.78 and 326.99 where it has been caught now for the whole last trading week.
One bullish candlestick pattern matches today's price action, the White Candle. The last time a White Candle showed up on March 17th, ADBE actually lost -5.52% on the following trading day.
Adobe managed to close back above the 200-day moving average at 307.58. Prices are trading close to the key technical resistance level at 330.00 (R1).
The market shows strength in the short-term supported by its long-term uptrend with only the medium-term trend being bearish.
Buying could accelerate should prices move above the nearby swing high at 326.99 where further buy stops might get activated.
Among the nine market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Close to Swing High" stand out. Although it is usually interpreted as neutral, it has actually shown to be bullish for Adobe. Out of 845 times, ADBE closed higher 53.85% 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 61.18% with an average market move of 0.95%.