ADBE rises to highest close ever
Adobe Inc. (ADBE) Technical Analysis Report for May 22, 2020 | by Techniquant Editorial Team
ADBE finished the week 5.46% higher at 385.26 after gaining $3.09 (0.81%) today on low volume, slightly outperforming the Nasdaq 100 (0.38%) ahead of tomorrow's Memorial Day market holiday. Today's close at 385.26 marks the highest recorded closing price ever. The bulls were in full control today, moving the market higher throughout the whole session. Closing above Thursday's high at 385.12, the stock confirmed its breakout through the prior session high after trading up to $1.40 above it intraday.
Daily Candlestick Chart (ADBE as at May 22, 2020):
Friday's trading range has been $5.55 (1.46%), that's below the last trading month's daily average range of $9.31. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for ADBE.
Three candlestick patterns are matching today's price action, the Bullish Short Candle and the White Candle which are both known as bullish patterns and one bearish pattern, the Last Engulfing Top Pattern. The last time a Bullish Short Candle showed up on April 13th, ADBE gained 6.27% on the following trading day.
Prices are trading close to the key technical resistance level at 386.75 (R1). After having been unable to move lower than 380.60 in the previous session, the share found buyers again around the same price level today at 380.97.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
With prices trading close to this year's high at 386.75, upside momentum might accelerate should Adobe be able to break out to new highs for the year.
Among the six market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bullish Short Candle" stand out. Its common bullish interpretation has been confirmed for Adobe. Out of 85 times, ADBE closed higher 50.59% 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 65.88% with an average market move of 1.72%.