ADBE near Confluence Support - 33% ROI Possible

1月3日

ADBE is currently nearing a confluence support (an area where multiple support elements are combined) at around $410-$420. Nevertheless, opening a first position right now is already an option given the attractive valuation and the horizontal support (blue zone). In addition there are two big daily gaps (red zones) above the current price giving us some potential pulling factor towards $580. The trendline you can see is very weak and has only two real re-tests in October 2022. So, take that with a grain of salt and try to concentrate more on the horizontal support and the $410-$420 area (61.8 fib).

Looking at fundamentals (I know most of you are not really interested in such things, but they do help with swing trades) we can see a price-to-sales ratio of 9.xx suggesting upside of 50% when comparing it to the long-term average of 14.xx. ARR increased 23% YoY to $3.48B. In terms of AI, firefly generated more than 16 billion assets so far, and FY24 revenue increased by a little more than 11% to $21.51B. Current PE ratio is just short of 22.

So, adding here and more towards that $410 will give us a huge potential ROI over the next couple of months.

Support Zones

• $440
  
• $410-420
  

Targe Zones

• $540
  
• $580-600
  

1月21日

トレード稼働中

Very interesting so far. We went right into the bear trap and back over the support. This is a good example for placing your stop loss not too close below support because otherwise, you will get killed, and the stock will go up.