Best of the Week
Most Popular
1. Investing in a Bubble Mania Stock Market Trending Towards Financial Crisis 2.0 CRASH! - 9th Sep 21
2.Tech Stocks Bubble Valuations 2000 vs 2021 - 25th Sep 21
3.Stock Market FOMO Going into Crash Season - 8th Oct 21
4.Stock Market FOMO Hits September Brick Wall - Evergrande China's Lehman's Moment - 22nd Sep 21
5.Crypto Bubble BURSTS! BTC, ETH, XRP CRASH! NiceHash Seizes Funds on Account Halting ALL Withdrawals! - 19th May 21
6.How to Protect Your Self From a Stock Market CRASH / Bear Market? - 14th Oct 21
7.AI Stocks Portfolio Buying and Selling Levels Going Into Market Correction - 11th Oct 21
8.Why Silver Price Could Crash by 20%! - 5th Oct 21
9.Powell: Inflation Might Not Be Transitory, After All - 3rd Oct 21
10.Global Stock Markets Topped 60 Days Before the US Stocks Peaked - 23rd Sep 21
Last 7 days
Bitcoin Price TRIGGER for Accumulating Into Alt Coins for 2022 Price Explosion - Part 2 - 3rd Dec 21
Stock Market Major Turning Point Taking Place - 3rd Dec 21
The Masters of the Universe and Gold - 3rd Dec 21
This simple Stock Market mindset shift could help you make millions - 3rd Dec 21
Will the Glasgow Summit (COP26) Affect Energy Prices? - 3rd Dec 21
Peloton 35% CRASH a Lesson of What Happens When One Over Pays for a Loss Making Growth Stock - 1st Dec 21
Stock Market Sentiment Speaks: I Fear For Retirees For The Next 20 Years - 1st Dec 21 t
Will the Anointed Finanical Experts Get It Wrong Again? - 1st Dec 21
Main Differences Between the UK and Canadian Gaming Markets - 1st Dec 21
Bitcoin Price TRIGGER for Accumulating Into Alt Coins for 2022 Price Explosion - 30th Nov 21
Omicron Covid Wave 4 Impact on Financial Markets - 30th Nov 21
Can You Hear It? That’s the Crowd Booing Gold’s Downturn - 30th Nov 21
Economic and Market Impacts of Omicron Strain Covid 4th Wave - 30th Nov 21
Stock Market Historical Trends Suggest A Strengthening Bullish Trend In December - 30th Nov 21
Crypto Market Analysis: What Trading Will Look Like in 2022 for Novice and Veteran Traders? - 30th Nov 21
Best Stocks for Investing to Profit form the Metaverse and Get Rich - 29th Nov 21
Should You Invest In Real Estate In 2021? - 29th Nov 21
Silver Long-term Trend Analysis - 28th Nov 21
Silver Mining Stocks Fundamentals - 28th Nov 21
Crude Oil Didn’t Like Thanksgiving Turkey This Year - 28th Nov 21
Sheffield First Snow Winter 2021 - Snowballs and Snowmen Fun - 28th Nov 21
Stock Market Investing LESSON - Buying Value - 27th Nov 21
Corsair MP600 NVME M.2 SSD 66% Performance Loss After 6 Months of Use - Benchmark Tests - 27th Nov 21
Stock Maket Trading Lesson - How to REALLY Trade Markets - 26th Nov 21
SILVER Price Trend Analysis - 26th Nov 21
Federal Reserve Asks Americans to Eat Soy “Meat” for Thanksgiving - 26th Nov 21
Is the S&P 500 Topping or Just Consolidating? - 26th Nov 21
Is a Bigger Drop in Gold Price Just Around the Corner? - 26th Nov 21
Financial Stocks ETF Sector XLF Pullback Sets Up A New $43.60 Upside Target - 26th Nov 21
A Couple of Things to Think About Before Buying Shares - 25th Nov 21
UK Best Fixed Rate Tariff Deal is to NOT FIX Gas and Electric Energy Tariffs During Winter 2021-22 - 25th Nov 21
Stock Market Begins it's Year End Seasonal Santa Rally - 24th Nov 21
How Silver Can Conquer $50+ in 2022 - 24th Nov 21
Stock Market Betting on Hawkish Fed - 24th Nov 21
Stock Market Elliott Wave Trend Forecast - 24th Nov 21
Your once-a-year All-Access Financial Markets Analysis Pass - 24th Nov 21
Did Zillow’s $300 million flop prove me wrong? - 24th Nov 21
Now Malaysian Drivers Renew Their Kurnia Car Insurance Online With - 24th Nov 21
Gold / Silver Ratio - 23rd Nov 21
Stock Market Sentiment Speaks: Can We Get To 5500SPX In 2022? But 4440SPX Comes First - 23rd Nov 21
A Month-to-month breakdown of how Much Money Individuals are Spending on Stocks - 23rd Nov 21
S&P 500: Rallying Tech Stocks vs. Plummeting Oil Stocks - 23rd Nov 21
Like the Latest Bond Flick, the US Dollar Has No Time to Die - 23rd Nov 21
Cannabis ETF MJ Basing & Volatility Patterns - 22nd Nov 21
The Most Important Lesson Learned from this COVID Pandemic - 22nd Nov 21
Dow Stock Market Trend Analysis - 22nd Nov 21

Market Oracle FREE Newsletter

How to Protect your Wealth by Investing in AI Tech Stocks

The Most Interesting Stock Market Chart of the Week

Stock-Markets / Stock Markets 2010 Nov 06, 2010 - 12:25 PM GMT

By: Jared_Levy


Best Financial Markets Analysis ArticleI thought Friday would be the perfect time to bring you a bit of technical analysis insight. This week's stock market chart just blew me away when I saw it and thought it would be a great candidate. Adobe systems, the Silicon Valley software creator, should not only be known as the creator of PDF's and flash players, but maybe also for the enormous and frequent "gaps" in its stock price.

Adobe Versus Apple
Before we get to those gaps, there is one thing that we need to talk about and that is the ongoing feud between Adobe and Apple. You see, Steve Jobs doesn't like flash and doesn't want it in his devices. In a letter to investors (and the public) Jobs noted six reasons why Apple doesn't run flash on any mobile devices and the iPad. I don't know about you, but going head to head with Apple would not be on my wish list this Christmas.

Apple is obviously a dominator in mobile and personal computers and a force to be reckoned with. Flash is a very profitable product for Adobe and they will do what they can to make it work. It's a battle that both want to win at just about any cost.

Enter Skyfire and their new browser, which bears the same name. Skyfire provides iPhone and other users a way to view videos and other content that is flash-based. So if you have been dying to watch or play anything flash on your iPhone, a solution is here. Skyfire is not related to either company and they actually halted sales due to the overwhelming demand.

Will this hurt or help Adobe? Apples shares seemed to like to the news, but Adobe stock is not looking as strong as it should have when the markets were screaming yesterday. .

Stock Market Chart Patterns

There are 2 big issues with the chart you see above. The first is the giant bearish channel the stock is currently in (indicated by the blue lines). Even with the gap up where it broke the channel, it found itself dramatically right back in it. This is a bearish sign for the near-term.

If you couple that with the fact that we have just closed the most recent gap and are headed for huge resistance at $30 (thick red line), which is not only resistance from a previous gap and a failed run past it, but more importantly, the $30 was the spot at which tried to break the channel and had a horrific failure, after it jumped all the way above $33, but came crashing back down to $27.

The chart above is telling me that if you are in Adobe with a long position, you should be extremely careful as the stock approaches $30. Couple that with the fact that earnings are due out on December 20th, and you could have a catalyst for a sell off if Adobe can't close above $30 with momentum.

Gaps, (highlighted in yellow) can do funny things to a stock price. Many traders look for gaps to be filled, in other words, they want the stock to return to where it was pre-gap. If the stock fails to do so, it can be a bearish sign if the gap is down.

Don't get too attached to the only saving grace for Adobe which was the fact that it did temporarily eclipse its bearish channel, but the stock tried to fill and failed, so that tells me it most likely won't occur again for some time.

How Do You Trade it?
If I were in Adobe long at this point, I would be looking for an exit around $30, at least until earnings are released or we can establish a bit more of a support in the stock price. Even though the MACD looks to have some momentum, proceed with caution.

P.S. If you want to polish your technical analysis tactics, my colleagues and I discussed chart patterns and many other methods of analysis and ideas at our annual 2010 Global Opportunities Summit in Las Vegas. The beauty is that the recordings are now available so you can listen at your leisure, they are relatively inexpensive and well worth it if you want to increase your investing tactic arsenal.

Don't forget to follow us on Facebook and Twitter for the latest in financial market news, investment commentary and exclusive special promotions.

Source :

By Jared Levy

Jared Levy is Co-Editor of Smart Investing Daily, a free e-letter dedicated to guiding investors through the world of finance in order to make smart investing decisions. His passion is teaching the public how to successfully trade and invest while keeping risk low.

Jared has spent the past 15 years of his career in the finance and options industry, working as a retail money manager, a floor specialist for Fortune 1000 companies, and most recently a senior derivatives strategist. He was one of the Philadelphia Stock Exchange's youngest-ever members to become a market maker on three major U.S. exchanges.

He has been featured in several industry publications and won an Emmy for his daily video "Trader Cast." Jared serves as a CNBC Fast Money contributor and has appeared on Bloomberg, Fox Business, CNN Radio, Wall Street Journal radio and is regularly quoted by Reuters, The Wall Street Journal and Yahoo! Finance, among other publications.

Copyright © 2010, Taipan Publishing Group

© 2005-2019 - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.

Post Comment

Only logged in users are allowed to post comments. Register/ Log in