Adobe appears to have put in a double bottom. Double or triple bottoms are usually near macro lows. Adobe has solid fundamentals with strong earnings and books. They maintain revenue growth, and are trading at a forward PE of 16 which is laughable. If the company buys back a decent amount of shares they will easily have over 30 EPS in 2030, leading to over a 700$ stock price if the multiple is around 25. The average PE for this stock is in the 50s.
Technically, we note a potentially double bottom, a rise here, with a momentum shift in the stochastic RSI. Volume has been on a slow and steady rise. BBWP is in the middle of the range.
The setup:
Shares, or calls at least 4 months out, seem reasonable here. I have about 40k cash freed up from last week's pump and am debating entering this setup as a lot of the market seems overvalued.
Technically, we note a potentially double bottom, a rise here, with a momentum shift in the stochastic RSI. Volume has been on a slow and steady rise. BBWP is in the middle of the range.
The setup:
Shares, or calls at least 4 months out, seem reasonable here. I have about 40k cash freed up from last week's pump and am debating entering this setup as a lot of the market seems overvalued.
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Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.