In a Real Money column on Wednesday, our own Jim Cramer discusses Adobe Systems' (ADBE) latest quarterly results. Shares of the the cloud software provider for creative professionals were down in early trading Wednesday after the company posted fiscal third-quarter earnings and revenue that beat analysts' forecasts but issued guidance for the fourth quarter below expectations.
Let's check out the charts again early Wednesday. We looked at ADBE Tuesday, where we concluded, "The charts and indicators of ADBE are tilted to the downside at this juncture but a bounce could change the picture quickly. Stand aside for now but remain flexible about new commitments."
In the daily bar chart of ADBE, below, we can imagine that prices are around $276 and pointed down toward the rising 200-day moving average line. The 50-day line still has a bearish slope.
The daily On-Balance-Volume (OBV) line is pointed up through Tuesday but a weak session on Wednesday could reverse that action. The Moving Average Convergence Divergence (MACD) oscillator should remain in bearish territory.
In the weekly bar chart of ADBE, below, we can imagine that prices are closer to the cresting 40-week moving average line. The week is not over but a lower close Wednesday will increase the odds that the OBV line declines.
The MACD oscillator is already pointed down in a take profits sell signal.
In this Point and Figure chart of ADBE, below, we can get a new column of "O's" Wednesday if the stock declines to $274.19. A trade at $271.47 could precipitate further declines should it happen.
Bottom-line strategy: We can discuss trends and probabilities but you never really know where prices are going to close Wednesday (or any day) so let's be ready for anything, keeping in mind that a trade at $271.47 is weak.