Can someone explain why ADBE is showing a crazy looking chart like it is? Is $43 some magical number I don't know about? It looks like it wants to pop up explosively at any second. But, of course, it doesn't. I don't have a position, I'm just wondering what the veterans make of it.
I guess you're talking about the 1-minute price chart? I am fairly new here, so I'm probably not considered a veteran, but I'll offer you my two cents. It appears that someone decided (correctly) that above $43 is a resistance area, modest may be, but resistance area it is. So, he (or they) programmed his trading system to feed out shares, without tipping his hand on his inventory size and in piecemeal, at $43, but no higher, keeping prices pegged on the upside at $43. One could reasonably argue therefore that this is bearish. But then how bearish? A review of the price chart suggests that there is significant support around $42.25 near term. Therefore, it appears that the chart implication is some potential downside to the $42.25 area in the short-term. Whether the $42.25 potential support will hold or not we've yet to see. Much really depends on the size of inventory of the price pegger. As to why he (or they) are doing this, and for what special purpose, your guess is as good as mine. Yep, the chart looks uncommon and there can be other possibilities to explain it, but I think the above explanation could be closest to the true one. Regards.