This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

5 Facebook Sympathy Trades From the Tech Sector

Adobe Systems

The exact opposite pattern -- a descending triangle -- is forming in shares of Adobe Systems (ADBE - Get Report). Adobe had been rallying hard for most of 2012, pushing the stock 14.5% higher since the first trading day of the new year, but the technical pattern in shares right now points to a reversal in that bull run.

Adobe currently has horizontal support at $32 and downtrending resistance has been in place since late March. The fact that Adobe has been able to catch a bid at $32 means that there are big implications if the stock can't bounce on another test of that level. That's why a break below that $32 support level makes Adobe a short candidate.

>>7 Stocks With Relative Strength to Beat the Market

Momentum, as measured by 14-day RSI, adds some confirmation to the downside setup -- it's been in a downtrend since January. Because momentum is a leading indicator of price, an RSI downtrend greatly increases the downside risks in ADBE.

Still, I'd strongly recommend sitting on the sidelines until a sustained break below $32. After that, I'd recommend a protective stop at the 50-day moving average.
4 of 6

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
ADBE $74.96 -5.40%
FB $99.75 -4.15%
GOOG $683.10 -0.07%
MSFT $49.41 -1.50%
STX $30.36 -3.90%


Chart of I:DJI
DOW 16,027.05 -177.92 -1.10%
S&P 500 1,853.44 -26.61 -1.42%
NASDAQ 4,283.7530 -79.3910 -1.82%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs