03/10/00 Adobe Systems (ADBE)
Points to watch: Adobe
has fallen 26.7% since it hit an all-time high of 106.63 on February 24th.
The stock dipped another 0.93 yesterday to close at 78.13 after hitting an
intraday low of 77 .
The stock has support from 77 (the 50%
retracement of its parabolic late January- February rally) to 79 ( a level
which acted as resistance in November).
Long
and short term technicals continue to deteriorate. Weekly RSI showed
negative divergence with price at the February peak and is in a solid
downtrend. Daily RSI and stochastics have both dropped below 65 from
overbought territory, and daily OBV has turned down.
A
sell short signal would be given if the stock fails to hold the lower end
of its support band at 76.94. Downside support after a break would be at
70.6, 66.3, and 60.4-61.8. Resistance is at 85.1-86.3, and 90.6.
