We looked at the charts of ADBE on Thursday and wrote that, "Adobe's charts look positive and I would trade ADBE from the long side as long as the $440 level holds (the halfway point of the support in the $460-$420 area)." Let's just double check on things ahead of earnings.
In this updated daily bar chart of ADBE, below, we can see that prices have held above the rising 50-day moving average line the past week. Trading volume declined and the On-Balance-Volume (OBV) line looks like it weakened a little.
The Moving Average Convergence Divergence (MACD) oscillator has crossed to the downside for a take profits sell signal.
In this weekly bar chart of ADBE, below, we still see an overall positive picture. Prices are still in an uptrend above the rising 40-week moving average line.
The OBV line shows a small peak in late August and the MACD oscillator narrowed in the past week. Some weakening in the indicators but not enough to run towards the exits.
In this daily Point and Figure chart of ADBE, below, we can see the potential downside price target in the $390 area which was visible last week. A rally to $503.10 will probably turn this chart bullish again.
In this weekly Point and Figure chart of ADBE, below, we can see a potential longer-term price target in the $600 area.
Bottom line strategy: I do not find any reasons on the charts to change our current strategy ahead of earnings on Tuesday. Adobe's charts look positive and I would trade ADBE from the long side as long as the $440 level holds.