Adobe gets an upgrade ahead of earnings, but one chart shows it could be headed for a pullback

  • 📰 CNBC
  • ⏱ Reading Time:
  • 46 sec. here
  • 2 min. at publisher
  • 📊 Quality Score:
  • News: 22%
  • Publisher: 72%

Business News News

Business Business Latest News,Business Business Headlines

A 'negative divergence' in Adobe's chart suggests the stock could be headed for further weakness, says Piper Sandler's Craig Johnson.

from analysts at Cowen ahead of its earnings report next week. The firm cited several catalysts, including demand for Adobe's cloud products as cause for the stock to climb as high as $555. Its price was $481 a share in Monday's premarket, up 2%.

"Typically, to us, that suggests to us that the stock is a little bit tired," he said. "I'd be waiting for a deeper pullback, perhaps all the way back to the 200-day moving average, which suggests a poor risk-reward right now." Steve Chiavarone, a portfolio manager, equity strategist and vice president at Federated Hermes, said software and semiconductor stocks should continue to rise over the long term.

"Shorter term, though, we think as this economic recovery takes hold that the market strength is going to broaden and not just be concentrated in these secular winners, but spread out to more cyclical parts of the market like value stocks, small caps and international," Chiavarone said. "So, if you like these names longer term, we think that they're good long-term investments. Short term, we think there could be a little bit of chop.

 

Thank you for your comment. Your comment will be published after being reviewed.
Please try again later.

sapna987 $555 on Wednesday morning would be amazing :)

We have summarized this news so that you can read it quickly. If you are interested in the news, you can read the full text here. Read more:

 /  🏆 12. in BUSÄ°NESS

Business Business Latest News, Business Business Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

Australia's Macquarie warns of 35% drop in first-half earnings on virus hit, shares dropAustralian investment bank Macquarie Group said on Monday it expects first-half earnings to be about 35% lower, citing challenging market conditions due to the coronavirus pandemic and uncertainties about the global economic recovery. In other news Trump is guilty of manslaughter
Source: Reuters - 🏆 2. / 97 Read more »