Rather than wring his hands over the coronavirus, Jim Cramer in his opening column on Real Money here on Friday put together a list of 10 stocks that he believes can work for investors while the world awaits a cure or vaccine for the disease or it runs its course. Among those 10 stocks is Adobe Inc. (ADBE) , which Cramer considers to be the best of the cloud kings. So, let's check out the charts of Abode.
In this daily bar chart of ADBE, below, we can see that prices recently have declined to close below the rising 50-day moving average line. The rally from late October was very impressive, with prices rallying about 50% in the blink of an eye. The slope of the 200-day moving average is positive and it intersects just above $300. The daily On-Balance-Volume (OBV) line shows a rise to a new high from October to the middle of February, but like many stocks a decline in the past two weeks. The Moving Average Convergence Divergence (MACD) oscillator recently turned lower for a take-profits sell signal.
In this weekly bar chart of ADBE, below, we can see the start of some weakness. Prices have broken the tight uptrend and are heading down toward the rising 40-week moving average line. The line intersects around $305. The weekly OBV line has started to move slightly lower, telling us that aggressive buying is giving way to some increased selling pressure. The MACD oscillator on this longer time frame has started to narrow toward a potential weekly take-profits signal.
In this daily Point and Figure chart of ADBE, below, we can see a possible downside price target in the $314 area.
Bottom line strategy: With good chart support anticipated around $310 -- the highs from November and July -- nimble and aggressive traders might consider probing the long side in the $315-$310 area provided we have signs that the decline is slowing or there is a candlestick reversal pattern.