We reviewed the charts of Adobe (ADBE) earlier this week on June 14 and wrote that "ADBE is showing a powerful move to the upside ahead of earnings. Hold longs and add to longs at current levels. Risk to $510 for now. The $589 area is our first upside price objective."
(For more on ADBE, see It's Not Too Late to Get Long or Re-Enter Adobe)
ADBE is now trading near a new all-time high of $570. So let's take a quick look at the charts again.
In this updated daily Japanese candlestick chart of ADBE, below, we can see the progress of the advance. The current candle pattern could stay red meaning that the close is below the open but that does not make it a reversal pattern. The slopes of the 50-day and 200-day moving averages remain very positive.
The trading volume is stronger than what we saw in May and the On-Balance-Volume (OBV) line is close to making a new high for the move up. The Moving Average Convergence Divergence (MACD) oscillator is in a bullish alignment above the zero line.
In this daily Point and Figure chart of ADBE, below, we can see the new high for the move up and a $580 price target.
In this weekly Point and Figure chart of ADBE, below, we see that the software now projects the $724 area as a potential long-term price target.
Bottom line strategy: Continue to hold longs that have been recommended in earlier reviews. Stops could be raised to $525 from $510.
