Current trend

Shares of Adobe Inc., a leading US software developer, have been rising since mid-May.

During this time, the quotes reversed from 343.75 (Murrey’s level [3/8]), moved into the positive zone of Murrey’s trading range, tested its upper limit at 500.00 (Murrey’s level [8/8]), and are now trading at 485.00. A breakout of the key “bullish” level of 500.00 will allow the price to reach 531.25 (Murrey’s level [ 1/8]) and 562.50 (Murrey’s level [ 2/8]). The key “bearish” level is 468.75 (Murrey level [7/8]), below the middle line of Bollinger bands, if it is broken, the decline will resume to the levels 437.50 (Murrey level [6/8]) and 406.25 (Murrey level [5/ 8]).

Technical indicators are signaling the continuation of the upward trend in the market: Bollinger bands and Stochastic are directed upwards, while the MACD histogram is decreasing in the positive zone.

Support and resistance

Resistance levels: 500.00, 531.25, 562.50.

Support levels: 468.75, 437.50, 406.25.

Trading tips

Long positions may be opened above 500.00 with the targets at 531.25, 562.50 and stop loss around 480.00. Implementation period: 5–7 days.

Short positions may be opened below 468.75 with the targets at 437.50, 406.25 and stop loss around 485.00.