3 Big Stock Charts for Wednesday: HP Inc (HPQ), Adobe Systems Incorporated (ADBE) and Apple Inc. (AAPL)

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We’ve been talking about the market’s melt higher, but we are starting to see some signs that a slight correction may be in the building. The reason for this is a decline in the correlation of performance in the S&P 500 companies. In other words, stocks are starting to head different directions.

This morning’s three big stock charts takes a look at HP Inc (NYSE:HPQ), Adobe Systems Incorporated (NASDAQ:ADBE) and Apple Inc. (NASDAQ:AAPL) as this group of stocks gives us a good feel for the technical situation in the market.

HP Inc (HPQ)

HP Inc (HPQ)
Source: Chart courtesy of StockCharts.com

Already mired in a bearish trend, shares of HP Inc are moving lower after a downgrade this morning.  The technical pictures are pressing HPQ stock towards a test of critical support.

  • Overhead resistance in the form of the stock’s 50-day is staunchly in place. This trendline has been declining, adding pressure to the stock and lowering the technical outlook.
  • After a short rally, shares of HPQ worked off an oversold reading, resulting in what is now clearly a “dead cat bounce”. The stock found round number resistance at $55, which is where we saw the stock reverse last week.
  • A critical test of the $50-level is on the horizon. This round numbered level should provide a little support for the stock. That said, our technical models suggest that the stock will move below, adding selling pressure to the shares. Watch for this break to lead to a selloff targeting $45.

Adobe Systems Incorporated (ADBE)

Adobe Systems Incorporated (ADBE)
Source: Chart courtesy of StockCharts.com

Earnings results have resulted in Adobe stock trading 2% higher this morning, but the stock is already selling from its highs. ADBE stock is trading in “sell the news” mode, which is targeting a move lower.

  • Over the last week, Adobe stock has rallied more than 8% as traders were “buying the rumor” ahead of the earnings announcement. This often results in selling pressure after the announcement.
  • The $144-level is the price that traders will be watching here as a move below this will put ADBE stock back into its trading range and force technicians to start selling.
  • Of course, the rally has resulted in a short-term overbought reading from the RSI for Adobe shares, which will fan the selling flames.

Apple Inc. (AAPL)

Apple Inc. (AAPL)
Source: Chart courtesy of StockCharts.com

Talk about a rock and a hard place. We nailed the outlook on Apple shares over the last few weeks as the stock has pulled back to $145.

Now, AAPL faces a test that will decide the next 5-10% move in the stock.

  • The $145 price has been clear chart support as designated by the red line in the chart above. Failure to hold this level will see technical traders increase their selling pressure on Apple shares.
  • The recent break below AAPL stock’s lower Bollinger Band suggests that the stock is likely to see an increase in volatility selling.
  • Overhead, the 50-day moving average is beginning to roll over. This will signal an intermediate-term bearish trend for the stock that will target a move to $130.

As of this writing, Johnson Research Group did not hold a position in any of the aforementioned securities.


Article printed from InvestorPlace Media, https://investorplace.com/2017/06/3-big-stock-charts-for-wednesday-hp-inc-hpq-adobe-systems-incorporated-adbe-and-apple-inc-aapl/.

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