Market Analysis

Breaking: Adobe price action before the earnings report release

By Antreas Themistokleous

14 December 2022

The shares of Adobe Inc (Symbol ‘ADBE’) has lost about 42% of its valuation in the last 12 months. Adobe Inc is expected to report its earnings for the quarter ending November 2022 on Thursday 15th of December after market close. The consensus EPS is $2.78 compared to the result for the same quarter last year of $2.77. 

‘Financial agitations pushed Adobe to lay off around 100 employees mostly from its sales team as the company reported in recent days. This is very minimal compared to other tech companies like Meta that announced last month a reduction in the headcount of about 11,000 employees while Cisco Systems Inc. announced a job reduction of more than 4,000 employees.’ said Antreas Themistokleous, market analyst in Exness.

On the technical side the price retested the daily bearish trendline last week and resumed the downward movement currently trading around the $326 price area at the time of this report. 

Since the falling 50 and 100 moving averages keep defending the overall bearish picture and the price failed to break the bearish trendline we can possibly see a continuation to the downside with a first point of support around the $ 312 area which is just below the 23.6% of the Fibonacci retracement level and also near the 50 day moving average. 

A correction to the upside before the earnings is also possible with a major area of resistance being around the $341 area which consists of the crossing of the 38.2% of the Fibonacci and the daily trendline.

Try trading with Exness advantages

Related articles