by Shane Ormond
On Jan 21, 2020
Now that the Chinese factory is complete (and just in time for a deadly virus outbreak), self-proclaimed “Buff Mage” Elon Musk is turning his attention to Germany, where colonies of bats and unexploded World War II bombs threaten to undermine investor confidence. (Those are not metaphors.)
On Friday, we looked at a Daily Price Chart of Cirrus Logic, Inc. and noted that the stock had been making a series of 52-Week Highs since August.
Today’s Chart of the Day is for Adobe Systems, Inc. (NYSE: ADBE).
Adobe Inc. operates as a diversified software company worldwide. Its flagship product is Creative Cloud, a subscription service that allows customers to download and access the latest versions of its creative products.
The Daily Price Chart below shows that ADBE has traded in a clear bullish pattern of higher highs and higher lows since late October.
Track the Price Chart from lower left to the upper right…
This bullish trading pattern points to a further advance.
You see, typically stocks that make a series of two or more higher highs and higher lows reliably continue on in an upward trend.
But it’s important to note that strong stock rallies have pullbacks along the way.
These pullbacks present a buying opportunity for us.
Purchasing ADBE after a 3 to 5% price pullback has provided a good entry point for the stock this year, and has produced a healthy return.
Maximizing Our Profit Potential
Additionally, we’d like to talk about how a previous Chart of the Day stock has done…
On December 5th, we highlighted Bristol Myers Squibb Co. (NYSE: BMY), noting that BMY had been on a bullish run after making a series of 52-Week Highs.
If you happened to have purchased BMY shares on that day, you’d already be up 9.86%.
But… if you had purchased the right option contract, you would be up 124.30% in just over five weeks’ time!
In fact, BMY is an open position in our premium trading service, PowerTrend Options. We’ve been profiting from BMY’s uptrend for several months now, and had you gotten in at the beginning of the trend, you’d be enjoying its rise as well!
That’s the power of options.
Editor, Chart Of The Day