jaxdog

$ADBE Nice Volatility Contraction Pattern (VCP)

Long
jaxdog Updated   
NASDAQ:ADBE   Adobe Inc.
$ADBE is showing great RS here. It is forming both a flat base and a VCP at the same time. The RS Line has the green dot and the $SPX is below the chart with the orange line where you can see the divergence and RS. The green dots are saying there is RS before price is likely to break-out (thanks @JohnMuchow which has great indicators here on TV).
ADBE is running right up against a declining but flattening 150 Day MA (same as 30-week MA) and area of resistance above. (Horizontal blue line). It is however, above a rising 50 Day MA, 21 Day EMA and 5 Day SMA. I’ve started a ½ size position before it breaks out. With a very tight stop. Ideas, not investing / trading advice.
Comment:
As of this morning I have built this out to a full size position. My stop is below the rising blue support line. Now I just have to let the market decide if I have a gain or loss. All I can do now is manage my risk.

I'll likely take 1/3 off if / when it breaks above the flat base as I expect selling into strength. TBD

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