Adobe Systems Incorporated (NASDAQ: ADBE)

Adobe Systems Incorporated is a diversified software company worldwide. It operates in three segments: Digital Media, Digital Marketing, and Print and Publishing. The Digital Media segment provides tools and solutions that enable individuals, small and medium businesses, and enterprises to create, publish, promote, and monetize their digital content. The Digital Marketing segment offers solutions for how digital advertising and marketing are created, managed, executed, measured, and optimized. The Print and Publishing segment offers products and services, such as eLearning solutions, technical document publishing, Web application development, and high-end printing, as well as publishing needs of technical and business, and original equipment manufacturers (OEMs) printing businesses. The company markets and licenses its products and services directly to enterprise customers through its sales force, as well as to end-users through app stores and through its Website at adobe.com.
Take a look at the 1-year chart of Adobe (NASDAQ: ADBE) below with my added notations:

Over the last 10 months ADBE has slowly climbed higher. During that time the stock had also formed a nice trend line of support (blue). Always remember that any (2) points can start a trend line, but it’s the 3rd test and beyond that confirm its importance. ADBE’s trendline is very important. Earlier this week the stock broke that trendline, and now it currently sits on its key level of $80 (green).

The Tale of the Tape: ADBE has broken below trend line support, but still holds its key level of $80. A short position could be entered on a rally up to the trendline, which is currently near $81, with a stop placed above that level, or wait for a break below $80. A long position could be entered at $80, or if ADBE were to break back above the trendline.