Approaching Resistance - Adobe

Published on Wednesday, 22 February 2012 07:20 Written by TradersHuddle Wire

New York, February 22nd (TradersHuddle.com) - Shares of Adobe Systems Incorporated (NASDAQ:ADBE) are trading very close to calculated resistance at $32.69 with the current price action closing at just $32.54 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 $27.395 and by the resistance level at $32.69, 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 $27.395 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 $32.69 then traders will get an opportunity to enter Adobe stock by establishing a position as the stock moves to a higher range.