Best of the Week
Most Popular
1. Stock Markets and the History Chart of the End of the World (With Presidential Cycles) - 28th Aug 20
2.Google, Apple, Amazon, Facebook... AI Tech Stocks Buying Levels and Valuations Q3 2020 - 31st Aug 20
3.The Inflation Mega-trend is Going Hyper! - 11th Sep 20
4.Is this the End of Capitalism? - 13th Sep 20
5.What's Driving Gold, Silver and What's Next? - 3rd Sep 20
6.QE4EVER! - 9th Sep 20
7.Gold Price Trend Forecast Analysis - Part1 - 7th Sep 20
8.The Fed May “Cause” The Next Stock Market Crash - 3rd Sep 20
9.Bitcoin Price Crash - You Will be Suprised What Happens Next - 7th Sep 20
10.NVIDIA Stock Price Soars on RTX 3000 Cornering the GPU Market for next 2 years! - 3rd Sep 20
Last 7 days
How to Invest in HIGH RISK Tech Stocks for 2021 and Beyond - Part 2 of 2 - 18th May 21
Are Apple, Tesla, and Bitcoin Entering Market Technical Excess Top Phase? - 18th May 21
Gold Watch Out as Price May Be Staging New Momentum Base In Preparation For A Big Move Upwards - 18th May 21
Why the Demand for US Real Estate Licenses May Soon Fall into a Sinkhole - 18th May 21
Semiconductor Equipment Maker ASML Is at the Center of the Global Chip Shortage - 18th May 21
Could This Be The Hottest Investment Sector For 2021? - 18th May 21
TESLA Tech Stock Bubble BURSTS! Stock Price Heading for CRASH to below $400 - 18th May 21
The Most Exciting Biotech Stock Of The Year? - 17th May 21
Gold Mining Stocks Fundamentals - 17th May 21
Junior Gold Miners Should be Rallying – What’s Holding Them Back? - 17th May 21
Stock Market - Should You Be In Cash Right Now? - 17th May 21
Learning the Financial Markets - 17th May 21
INVESTING IN HIGH RISK TECH STOCKS - ALL OR NOTHING - 16th May 21
Is Stock Market Selling Madness About Over? - 16th May 21
Crypto Bubble Bursts! Nicehash Suspends Coinbase Withdrawals, Bitcoin, Ethereum Bear Market Begins - 16th May 21
Budgies Birds of Paradise Indoor Grape Vine Singing, Chirping and Flying Parakeets Fun 3D VR180 UK - 16th May 21
Wall Street Roiled by Hot Inflation Data: Is This REALLY “Transitory”? - 16th May 21
Inflation Going Stag - 16th May 21
CHIA Coins After 1st Week of Plotting 140 Plot 14tb Farm. Crunching the Numbers How to Win - 15th May 21
Tips to Create the Best Cross-Functional Teams - 15th May 21
Gold: Lose a Battle to Win the War - 14th May 21
Are You Invested in America’s “Two-Hour Boom” Fast Shipping Stocks? - 14th May 21
Gold to Benefit from Mounting US Debt Pile - 14th May 21
6 Solid Signs You Should Have Your Smart Device Repaired Right Away - 14th May 21
Ways to Finance Your Business Growth - 14th May 21
Cathy Wood Ark Invest Funds Bubble BURSTS! ARKK, ARKG, Tesla Entering Severe Bear Market - 13th May 21
How Much CHIA Coins Profit from 100 Plot 10tb Farm? Hard Drive Space Mining - 13th May 21
Stock Market Bulls Getting Caught in the Whirlwind - 13th May 21
Legoland Windsor Mini land and Sky Train Virtual Tour in VR 360 - UK London Holidays 2021 - 13th May 21
Peak Growth and Inflation - 13th May 21
Where’s The Fed? Watch Precious Metals For Signs Of Inflation Panic - 13th May 21
Coronavius Covid-19 in Italy in August 2019! - 13th May 21
India Covid Apocalypse Heralds Catastrophe for Pakistan and Bangladesh - 13th May 21
TESLA! Cathy Wood ARK Funds Bubble BURSTS! - 12th May 21
Gold Price During Hyperinflation - 12th May 21
Stock Market Extending Phase Two? - 12th May 21
Crypto 101 for new traders – ETH or BTC? - 12th May 21
Stock Market Enters Early Summer Correction Trend Forecast Time Window - 11th May 21
GOLD GDX, HUI Stocks - Will Paradise Turn into a Dystopia? - 11th May 21
Cathy Wood Bubble Bursts as ARK Funds CRASH! Enter into a Severe Bear Market - 11th May 21
Apply This Technique to Stop Rushing into Trades - 10th May 21
Stock Market Entering Early Summer Correction Trend Forecast - 10th May 21
CHIA Getting Started SSD Crypto Mining by Plotting and Farming on Your Hard Drives Guide - 9th May 21
Yaheetech Mesh Best Cheap Computer /. Gaming Chairs on Amazon Review - 9th May 21
Breaking US Trade Embargo with Cuba - Build 7 Computers in 14 Hours Before Ship Sales Challenge - 9th May 21
Dripcoin Applies New Technology That Provides Faster Order Execution - 9th May 21
Capital Gains Tax Hike News: Was It REALLY to Blame for Sell-off? - 7th May 21
Stock Market Transportation Index Continues To Grind Higher - 7th May 21
SPX Stock Market Correction Arriving or Not? - 7th May 21
How to Invest in an Online Casino? - 7th May 21
Gold & Silver Begin New Advancing Cycle Phase - 6th May 21
Vaccine Economic Boom and Bust - 6th May 21
USDX, Gold Miners: The Lion and the Jackals - 6th May 21
What If You Turn Off Your PC During Windows Update? Stuck on Automatic Repair Nightmare! - 6th May 21
4 Insurance Policies You Should Consider Buying - 6th May 21

Market Oracle FREE Newsletter

How to Protect your Wealth by Investing in AI Tech Stocks

The Most Interesting Stock Market Chart of the Week

Stock-Markets / Stock Markets 2010 Nov 06, 2010 - 12:25 PM GMT

By: Jared_Levy

Stock-Markets

Best Financial Markets Analysis ArticleI thought Friday would be the perfect time to bring you a bit of technical analysis insight. This week's stock market chart just blew me away when I saw it and thought it would be a great candidate. Adobe systems, the Silicon Valley software creator, should not only be known as the creator of PDF's and flash players, but maybe also for the enormous and frequent "gaps" in its stock price.


Adobe Versus Apple
Before we get to those gaps, there is one thing that we need to talk about and that is the ongoing feud between Adobe and Apple. You see, Steve Jobs doesn't like flash and doesn't want it in his devices. In a letter to investors (and the public) Jobs noted six reasons why Apple doesn't run flash on any mobile devices and the iPad. I don't know about you, but going head to head with Apple would not be on my wish list this Christmas.

Apple is obviously a dominator in mobile and personal computers and a force to be reckoned with. Flash is a very profitable product for Adobe and they will do what they can to make it work. It's a battle that both want to win at just about any cost.

Enter Skyfire and their new browser, which bears the same name. Skyfire provides iPhone and other users a way to view videos and other content that is flash-based. So if you have been dying to watch or play anything flash on your iPhone, a solution is here. Skyfire is not related to either company and they actually halted sales due to the overwhelming demand.

Will this hurt or help Adobe? Apples shares seemed to like to the news, but Adobe stock is not looking as strong as it should have when the markets were screaming yesterday. .

Stock Market Chart Patterns

There are 2 big issues with the chart you see above. The first is the giant bearish channel the stock is currently in (indicated by the blue lines). Even with the gap up where it broke the channel, it found itself dramatically right back in it. This is a bearish sign for the near-term.

If you couple that with the fact that we have just closed the most recent gap and are headed for huge resistance at $30 (thick red line), which is not only resistance from a previous gap and a failed run past it, but more importantly, the $30 was the spot at which tried to break the channel and had a horrific failure, after it jumped all the way above $33, but came crashing back down to $27.

The chart above is telling me that if you are in Adobe with a long position, you should be extremely careful as the stock approaches $30. Couple that with the fact that earnings are due out on December 20th, and you could have a catalyst for a sell off if Adobe can't close above $30 with momentum.

Gaps, (highlighted in yellow) can do funny things to a stock price. Many traders look for gaps to be filled, in other words, they want the stock to return to where it was pre-gap. If the stock fails to do so, it can be a bearish sign if the gap is down.

Don't get too attached to the only saving grace for Adobe which was the fact that it did temporarily eclipse its bearish channel, but the stock tried to fill and failed, so that tells me it most likely won't occur again for some time.

How Do You Trade it?
If I were in Adobe long at this point, I would be looking for an exit around $30, at least until earnings are released or we can establish a bit more of a support in the stock price. Even though the MACD looks to have some momentum, proceed with caution.

P.S. If you want to polish your technical analysis tactics, my colleagues and I discussed chart patterns and many other methods of analysis and ideas at our annual 2010 Global Opportunities Summit in Las Vegas. The beauty is that the recordings are now available so you can listen at your leisure, they are relatively inexpensive and well worth it if you want to increase your investing tactic arsenal.

Don't forget to follow us on Facebook and Twitter for the latest in financial market news, investment commentary and exclusive special promotions.

Source : http://www.taipanpublishinggroup.com/tpg/...

By Jared Levy
http://www.taipanpublishinggroup.com/

Jared Levy is Co-Editor of Smart Investing Daily, a free e-letter dedicated to guiding investors through the world of finance in order to make smart investing decisions. His passion is teaching the public how to successfully trade and invest while keeping risk low.

Jared has spent the past 15 years of his career in the finance and options industry, working as a retail money manager, a floor specialist for Fortune 1000 companies, and most recently a senior derivatives strategist. He was one of the Philadelphia Stock Exchange's youngest-ever members to become a market maker on three major U.S. exchanges.

He has been featured in several industry publications and won an Emmy for his daily video "Trader Cast." Jared serves as a CNBC Fast Money contributor and has appeared on Bloomberg, Fox Business, CNN Radio, Wall Street Journal radio and is regularly quoted by Reuters, The Wall Street Journal and Yahoo! Finance, among other publications.

Copyright © 2010, Taipan Publishing Group


© 2005-2019 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in