Current trend

Shares of Adobe Inc., a leading American software developer, have been declining for the third month in a row, trying to reverse a long-term uptrend: the price reversed around at 625.00 (Murrey level [8/8]), passed the main Murrey trading range from top to bottom and is now actively testing its lower border around 500.00 (Murrey level [0/8]); after consolidation below it, the decline may continue to 468.75 (Murrey level [-2/8]) and 437.50 (Murrey level [3/8], W1).

The key for the "bulls" is the reversal level of 531.25 (Murrey level [2/8]), supported by the central line of Bollinger Bands, the breakout of which will allow the quotes to continue growing to the levels of 562.50 (Murrey level [4/8]) and 578.12 (Murrey level [5/8]).

Technical indicators confirm the probability of continued decline: Bollinger Bands and Stochastic are pointing downwards, MACD is decreasing in the positive zone.

Support and resistance

Resistance levels: 531.25, 562.50, 578.12.

Support levels: 500.00, 468.75, 437.50.

Trading tips

Short positions should be opened below the 500.00 mark with targets of 468.75, 437.50 and stop-loss around 519.00. Implementation period: 5–7 days.

Long positions can be opened above 531.25 with targets of 562.50, 578.12 and stop-loss around 510.00.