Yesterday, we looked at a Daily Price Chart of Astrazeneca PLC, noting that the stock’s 50-Day EMA is trading above the 100-Day EMA.
Today’s Chart of the Day is a 10-Month Simple Moving Average chart for Adobe Systems, Inc. (NASDAQ: ADBE).
Adobe Inc. operates as a diversified software company worldwide. Its Digital Media segment provides tools and solutions that enable individuals, small and medium businesses, and enterprises to create, publish, promote, and monetize their digital content. Its flagship product is Creative Cloud — a subscription service that allows customer to download and access the latest versions of its creative products.
Now, below is a 10-Month Simple Moving Average chart for Adobe Systems, Inc.
Back in January 2019, the ADBE 1-Month Price crossed above the 10-Month Simple Moving Average (SMA) indicating ADBE is on a PowerTrend ‘buy’ signal (circled).
Guess what happened next…
Sure enough, prices continued to rise.
Since the PowerTrend ‘buy’ signal occurred for the stock back in January 2019, when the stock was around $244.95, the stock has seen an 81.7% increase.
Now, as you can see, the 1-Month Moving Average is still above the 10-Month SMA. That means the bullish trend is still in play!
This bullish price trend makes ADBE a good candidate for a call option purchase.
As long as the 1-Month Price remains above the 10-Month SMA, the stock is more likely to keep trading at new highs in the coming days and weeks.
We’ll be keeping our eye on this stock as it continues to trend upward so we’ll know the moment the market conditions shift and the stock begins to come back down offering a better buying opportunity in a bullish market.
Additionally, we’d like to talk about how a previous Chart of the Day stock has done…
The Power of Options
On June 29, we highlighted Yeti Holdings Inc. (NYSE: YETI), noting that YETI’s OBV line was sloping up.
If you happened to have purchased YETI shares on that day, you’d already be up 12.9%.
But… if you had purchased the right option contract, you would be up 44.4% in just under a months’ time!
That’s the power of options.
Editor, Chart Of The Day