Adobe Systems Makes Waves

Cloud-based application and computing names have been strong in 2018, and Adobe Systems has led the way. Powered by strong earnings and subscription growth, the company has transformed itself into a high-flying cash machine with an incredibly strong niche in this competitive industry. The chart tells the story.

Note the strong uptrend of higher highs and higher lows, an envious, bullish pattern. The MACD has been positive, while last week’s breakout on higher turnover was a big moment for the stock – it hit new, all-time highs. Though Monday was a downer day (as it was for all tech companies), note the loss was on much lower turnover.

If the market pulls back, the stock would likely retreat to the 50 ma – and that could be a great buying opportunity. If this doesn’t happen, look for a move past the old highs very soon.