Adobe Is Moving Above Resistance

Published on Wednesday, 28 March 2012 06:48 Written by TradersHuddle Wire

New York, March 28th (TradersHuddle.com) - Shares of Adobe Systems Incorporated (NASDAQ:ADBE) closed the session at $34.63 just above calculated resistance at $34.55. The stock moved to what appears to be a higher range, spurring attention from momentum buyers.

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.

The stock was trading in a well defined range with support at $31.90 and resistance at $34.55. Given that this range was broken, traders will be closely monitoring Adobe's price action to gather clues on the future direction.

From a technical perspective, it can be expected that previous resistance becomes support, as the new range gets defined. However, given that Adobe is still near the broken resistance level, traders will be focusing on the $34.55 level to see if the stock holds the breakout without rolling over.