Adobe near Key Resistance Area

Published on Monday, 30 January 2012 09:28 Written by Christian Paolinetti

New York, January 30th (TradersHuddle.com) - Shares of Adobe Systems Incorporated (NASDAQ:ADBE) are trading very close to calculated resistance at $31.77 with the current price action closing at just $31.05 placing the stock near levels that make it difficult to buy.

Adobe Systems Incorporated (NASDAQ:ADBE) develops, markets, and supports computer software products and technologies. The Company's products allow users to present and use information across all print and electronic media. Adobe offers a line of application software products, type products, and content for creating, distributing, and managing information. The company popular Acrobat Reader allows companies and consumers to exchange a wide variety of electronic information and documents.

Adobe's current stock range is defined by current calculated support defined at $27.40 and by the resistance level at $31.77, the stock is clearly over-extended from support, making it difficult to establishing new long positions at this level.

Traders don't have a clear entry point for Adobe, as the stock is well above support, however, as the stock pulls back towards $27.40 it will definitely provide a reference point to establish a trade. On the other hand if the stock decides to break above resistance level at $31.77 then traders will get an opportunity to enter Adobe stock by establishing a position as the stock moves to a higher range.