Current trend

Shares of Adobe Inc., a leading American software developer, have been adjusting to a medium-term downtrend for the second month in a row: the price reversed from the 437.50 mark (Murrey level [2/8]), moved into the positive zone of the Murrey trading range and consolidated above the reversal level of 562.50 (Murrey level [6/8]). Further growth is possible towards the targets of 593.75 (Murrey level [7/8]) and 625.00 (Murrey level [8/8]).

The key for the "bears" is the central mark of the Murrey trading range at 500.00 (Murrey level [4/8]), supported by the central line of Bollinger Bands, a breakdown of which will ensure a resumption of decline to 437.50 (Murrey level [2/8]) and 406.25 (Murrey level [1/8]), but this scenario is less likely.

Technical indicators confirm the possibility of continued growth: Bollinger Bands and Stochastic are directed upwards, MACD is increasing in the positive zone.

Support and resistance

Resistance levels: 593.75. 625.00.

Support levels: 500.00, 437.50, 406.25.

Trading tips

Long positions can be opened from the 575.00 mark with targets of 593.75. 625.00 and stop-loss around 560.00. Implementation period: 5–7 days.

Short positions should be opened below the level of 500.00 with targets of 437.50, 406.25 and stop-loss around 518.00.