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Adobe Systems Inc. (NASDAQ: ADBE $33.20)
News event: Adobe offers to purchase Omniture for $1.8 billion and reports lower than consensus third quarter earnings.
Technical comment: Adobe currently has a positive technical profile. Intermediate trend is up. The stock trades above its 50 and 200 day moving averages. Strength relative to the S&P 500 Index has been positive since March. The stock recently broke above intermediate resistance at $33.49. Intermediate support is at $30.70. The stock has more than doubled from its March low at $15.70. The news this morning has dropped the stock to the top of its pervious trading range between $30.70 and $33.49. RSI and Stochastics have rolled over from a short term overbought level. Seasonal influences are favourable between October and early January. Preferred strategy is to buy on weakness closer to support.
Chart courtesy of StockCharts.com www.stockcharts.com
Amazon.com Inc. (NASDAQ: AMZN)
News event: Bank of America/Merrill upgraded the stock from Neutral to Buy
Technical comment: Amazon currently has a positive technical profile. Intermediate trend is up. The stock trades above its 200 day moving average and recently moved above its 50 day moving average. Seasonal influences are favourable between October and early January. Intermediate support is at $77.51 and intermediate resistance is at $94.40. On the other hand, strength relative to the S&P 500 Index has been negative since March. In addition, short term momentum indicators (MACD, RSI and Stochastics) are mixed.
Chart courtesy of StockCharts.com www.stockcharts.com
Verizon Communications Inc. (NYSE:VZ $)
News event: UBS downgraded the stock from Buy to Neutral
Technical comment: Verizon has a mixed technical profile. Intermediate trend is up. However, the stock broke below its 50 day moving average this morning and is testing its 200 day moving average and intermediate support at $30.00. Intermediate resistance is at $31.79 and $32.69. Strength relative to the S&P 500 Index has been negative since March. Short term momentum indicators (MACD, RSI and Stochastics) are trending lower from overbought levels. Preferred strategy is to avoid the stock for now.
Chart courtesy of StockCharts.com www.stockcharts.com
Don Vialoux
Director of the Canadian Society of Technical Analysts
Comments offered in this report are for information only. They should not be considered as advice to purchase or to sell mentioned securities. An attempt to provide accurate data has been made, but accuracy is not guaranteed. Comments are from Don Vialoux and not from the Canadian Society of Technical Analysts.
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September 16th, 2009 at 10:17 am
Hello Don: What is your opinion on holding bond ETFs at this time, including real return bonds (XSB, XBB, XCB, XRB)? Are these good hedge against a fall correction in the equity markets, or are they vulnerable too?
September 16th, 2009 at 10:39 am
Hi Victorian. Bond prices and yields in Canada and the U.S. currently are in a trading range without a trend. Look for continuation of a trendless move until the Federal Reserve takes action to tighten monetary policy in the U.S.
September 17th, 2009 at 2:44 am
Hi, I currently study the stock SWI – SolarWinds Inc. I am a bit confused about the message shown by MACD (rising) but the Stochastics are very up. Could you tell us how can you interpret the messages shown by MACD and Stochastics?
Thank you