ADBE psar bull signal

Adobe Systems (ADBE), the software company that among other things makes it possible for people to read PDF files on their PCs, is showing a psar bull signal after a one-day whipsaw.

The stock has been in an uptrend since Feb. 16 and is showing a strong adx of 29. The macd, having fallen for 11 trading days, is on the cusp of turning up again as it meanders through bull territory. The so is in the neutral zone and rising toward the overbought line, a bullish sign.


ADBE is trading at $35.60 and has several reversal points above it before reaching the last major top at $37.80, set on Jan. 5.

You are here:

• Reversals down
• $37.80, +6.2%
• $36.13, +1.5%
• Now $35.60
• Reversals up
• $34.93, -1.9%
• $33.20, -6.7%

Not too terribly congested. I would play it as a bull call spread.

A caution, though, earnings are March 23 after the markets close, so that sets up the possibility of a news surprise that would override the trend. For my own portfolio, I would wait before opening the position.

This signal will be followed in the daily Watchlist, which is posted beginning around 2:45 p.m. Eastern. Look for it at www.timbovee.com.

Abbreviations:
psar - Parabolic Stop and Reverse
adx - Average Directional Index
pps - Person's Proprietary Signal
ma20 - 20-day moving average
macd - Moving Average Convergence-Divergence
mfi - Money Flow Index
sto - Fast Stochastic