4 Trade Ideas for Adobe: Bonus Idea

• Posted by Greg Harmon
• on July 31st, 2023

Here is your Bonus Idea with links to the full Top Ten:

Adobe, $ADBE, comes into the week in consolidation at the 38,2% retracement of the post pandemic move higher after a major move higher. It has a RSI resetting in the bullish zone with the MACD bullish and also resetting lower. There is support lower at 511.50 and 492.50 then 474.50 and 455. resistance higher is at 535 then 553 and 582.50 before 600 and 630. Short interest is low at 1%. The stock pays no dividend.

The company is expected to report earnings next on September 13. The August chain shows biggest open interest at the 525 and 500 puts, while at the same strikes on the call side. The September chain has biggest open interest at 490 and 480 on the put side and from 500 to 550 on the call side. The October chain has little open interest on the put side.. On the call side it is spread from 520 to 560.

Adobe, Ticker: $ADBE

Trade Idea 1: Buy the stock on a move over 535 with a stop at 511.

Trade Idea 2: Buy the stock on a move over 535 and add a September 525/500 Put Spread ($9.80) while selling the September 575 Call ($8.95).

Trade Idea 3: Buy the September/October 550 Call Calendar ($8.60) and sell the September 490 Puts ($8.85).

Trade Idea 4: Buy the October 490/540/575 Call Spread Risk Reversal for a 35 cent credit.

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After reviewing over 1,000 charts, I have found some good setups for the week. These were selected and should be viewed in the context of the broad Market Macro picture reviewed Friday which with one trading day left in July saw that equity markets showed resilience, holding up and improving in a week with rate hikes from Fed and ECB and slight loosening of the band for rates in Japan.  

Elsewhere look for Gold to continue its pullback while Crude Oil consolidates in the top of broad range. The US Dollar Index continues to bounce in the downtrend while US Treasuries continue their trend lower. The Shanghai Composite looks to continue the pullback in broad consolidation while Emerging Markets continue a short term move higher.

The Volatility Index looks to remain very low and stable making the path easier for equity markets to the upside. Their charts continue to look strong on the longer timeframe. On the shorter timeframe both the QQQ and IWM look to continue in sideways channels while the SPY resumes the trend higher. Use this information as you prepare for the coming week and trad’em well.

If you like what you see above sign up for deeper analysis and trading strategy by using the Get Premium button above. As always you can see details of individual charts and more on my StockTwits page.

The information in this blog post represents my own opinions and does not contain a recommendation for any particular security or investment. I or my affiliates may hold positions or other interests in securities mentioned in the Blog, please see my Disclaimer page for my full disclaimer.

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