Adobe is an American software company that has made some of the most iconic software products in graphic designing, multimedia, and creativity areas. It is best known for Photoshop and Flash player. Acrobat PDF is also a popular product. The company is now also making inroads into digital marketing software, which has good long-term potential.
A look at the monthly 10-year chart for Adobe (ADBE) shows the company has been in a long-term up-trend since 2013. The up-trend has quickened post the end of 2016. Recently, the stock had a 10% fall in February and March of 2020. Since then, the stock has pulled back about 3%.
The reversal in the recent downward trend happened close to a significant area of value. This area of value consists of the bottom of the long-term trend, shown by the bottom yellow line, and a support level, as shown by the dotted light blue line. The current price level has also filled a gap which opened at the beginning of April 2020. Positions taken at $311.32 with stop loss 10.06% below at $280. Suggested short-term take profit target $380 with a profit of 22%.