Adobe Systems (ADBE) Stock Is the 'Chart of the Day'

NEW YORK (TheStreet) -- Shares of Adobe Systems (ADBE) were up 0.85% to $84.26 in midday trading Wednesday.

The software company recently released the 2015 version of its flagship Creative Cloud tools and services with new mobile applications.

Additionally, the company launched stock photo service Adobe Stock, after acquiring stock agency Fotolia

San Jose, Calif.-based Adobe Systems is a diversified software company that offers a line of products and services used by creative professionals, marketers, knowledge workers, application developers, enterprises and consumers.

The company's business is organized into three segments including digital marketing, digital media, and print and publishing.

Insight from TheStreet's Research Team:

Bryan Ashenberg and Bob Lang have identified Adobe Systems as the TrifectaStocks.com Chart of the Day. Here is what Ashenberg and Lang had to say about the stock's chart:

Adobe Systems has been around for a long time, which is a testament to its unique products and positioning. Its software, some of which is free to users, is world-class, and the company easily competes with some of the biggest brands in the technology sector, including Oracle (ORCL), Microsoft (MSFT) and SAP (SAP).

One of their advantages is that they know the cloud is their future, and they are making the transition pay off. Their earnings report last week confirmed that their growth prospects are solid.

However, after last week's earnings report, their stock dipped when the "hot money" fled. That set up a nice entry point for options traders. The stock moved sideways and then exploded to a new all-time high on Monday, June 22. Apparently, the stockholders last week were not watching the technicals.

 

The price action all day was impressive, but now we see volume surging to levels not seen during an "up session" since May.

The Moving Average Convergence Divergence has issued a buy signal, and price has accelerated above the upper Bollinger Band, setting up a potential fat tail trade (the setup is ideal. We just need some follow-through). See more analysis in this video

DISCLOSURE: Trifecta Stocks has no position in ADBE. This Alert is a technical analysis of the company's chart, and we are not taking any action in the stock at this time.

- Bryan Ashenberg and Bob Lang, "Chart of the Week: ADBE" originally published 6/24/15 on TrifectaStocks.com

Want more information like this from Bryan Ashenberg and Bob Lang BEFORE your stock moves? Learn more about Trifecta Stocks now.

Separately, TheStreet Ratings team rates ADOBE SYSTEMS INC as a Buy with a ratings score of B. TheStreet Ratings Team has this to say about their recommendation:
 
"We rate ADOBE SYSTEMS INC (ADBE) a BUY. This is driven by multiple strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures, compelling growth in net income, solid stock price performance and impressive record of earnings per share growth. Although no company is perfect, currently we do not see any significant weaknesses which are likely to detract from the generally positive outlook."
 
You can view the full analysis from the report here: ADBE Ratings Report

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