$NET and $ETSY — a preview of coming attractions for Adobe ($ADBE) (July 30, 2020)ADBE NET ETSY TDOC NET ADBE
I want to look at Adobe ( NASDAQ: ADBE ) today and I will tell you why I want to look at Adobe ( NASDAQ: ADBE ); it has to do with Cloudflare ( NYSE: NET ), it has to do with Etsy ( NASDAQ: ETSY ), and it has to do with Teladoc ( NYSE: TDOC ).
This is what I am talking about: I am talking about the type of pattern where we’ve got this downtrending resistance line and some kind of flatter even an uptrending support line. The real entry on these is on the pinch; this isn’t the greatest one here, in fact, I am going to do is, I am going to go to NET ( NYSE: NET ), that’s a better one.
The entry here is when the stock first starts to push up against this, like here. You can take an early entry here, this isn’t hindsight stuff this is how you trade, back on a test of this last low and it’s working so maybe you are taking it right up here at 37.30. And then what you are watching for is a breakthrough this line. And so you’d be even buying here, 38.64ish, something like that, you can see what is happening. And then you are in the position for this kind of move here.
If we look at Adobe ( NASDAQ: ADBE ) you will see a very similar thing only with one exception, the stock hasn’t broken through yet, that’s why I am pointing it out to you. We look at this stock and I wouldn’t buy this stock right now if I were you; because you are getting this video after hours I would wait till tomorrow morning to buy this stock.
This is in a really good setup; they don’t have earnings, that’s not an issue. This is just kind of coiling here and you are going to have to get give the stock about 5 percent of room on the downside. It has to stay above the 50-day moving average or you are out of here. But with this stock right where it is now I think you can be a little bit proactive, take a small position here and then if the stock starts breaking out, that’s when you can add to that position so you have got kind of a head start on it, which give you a lower overall cost basis. Anyway, that’s my deal on Adobe ( NASDAQ: ADBE ).