Software giant Adobe (ADBE) is scheduled to report their latest quarterly earnings after the close of trading Wednesday. Let's check out the position of the charts and indicators.
In this daily bar chart of ADBE, below, I can see that prices turned lower in early February. Prices rallied above the declining 200-day moving average line for a couple weeks but are back below this longer-term declining indicator. The shorter 50-day moving average line has turned flat and is poised to go negative.
The On-Balance-Volume (OBV) line has been neutral the past five months or so but could soon make a new low for the move down. The trend-following Moving Average Convergence Divergence (MACD) oscillator is bearish.
In this weekly Japanese candlestick chart of ADBE, below, I see a weak or bearish picture. Prices are in a longer-term downward path from the $690 area back in late 2021. The slope of the 40-week moving average line is negative and prices are back below this indicator.
The OBV line shows weakness from late January after a bounce. The MACD oscillator is below the zero line (bearish) and crossing to the downside for a fresh outright sell signal.
In this daily Point and Figure chart of ADBE, below, I can see a potential downside price target in the $257 area.
In this weekly Point and Figure chart of ADBE, below, I can see that the software is projecting a price target in the $237 area.
Bottom line strategy: I have no special knowledge of what ADBE will tell shareholders and analysts this evening but the charts of ADBE look weak and are pointed lower for now. Avoid the long side of ADBE.
