ADBE reported earnings Tuesday night. Fiscal second quarter non-GAAP earnings of $1.83 per share beat expectations by $0.05; revenue of $2.74 billion (+24.5% Y/Y) beat by $40 million, according to media reports.
It was Monday when we last looked at ADBE, but prices are indicated to open sharply higher this Wednesday. Let's see what the charts suggest.
In the daily bar chart of ADBE, below, we can how prices traded right up through Tuesday's close. Early Wednesday morning ADBE is trading around $288 or just short of the late April/early May peak. If prices can close above these highs with an expansion in volume it will be impressive.
Trading volume in the past two months does not suggest that investors close to the company were buyers in advance; however, the daily On-Balance-Volume (OBV) line was pointed up suggesting that buyers were more aggressive.
The Moving Average Convergence Divergence (MACD) oscillator was hugging the zero line so far this month indicating no strength to the trend.
In this weekly bar chart of ADBE, below, two more days of trading adds nothing to the picture.
In this long-term Point and Figure chart of ADBE, below, we can see a potential upside price target of $371 being projected.
Bottom-line strategy: ADBE could break out to a new high Wednesday or it could encounter profit-taking around $290. Early morning trading can be tricky so I would hold off on bold forecasts until the close of trading.