Once again, market attention during today’s session will be focused on the Federal Reserve meeting and the uncertainty generated in the Chinese economy by the technical bankruptcy of Evergrande; although, Evergrande has assured that tomorrow it will make coupon payments for its bonds listed in Shenzhen.
The Federal Reserve meeting and subsequent press conference will take place today at around 19:30 BST. Although Jerome Powell’s Fed is not expected to make any changes to its interest rate policy, the market will be listening closely, as during the press conference he might advance the tapering start date.
Meanwhile, the quarterly results season continues. The main protagonist during yesterday’s session was popular US company Adobe – which is dedicated to the creation of programs and software, mainly in the world of editing and design of web pages and images.
The company presented its results after the market close and, as in the results presented in June, they were slightly better than was expected by the market consensus. Earnings per share was reported at 3.11 USD, whilst revenue came in at 3,940 million USD.
Although these results were better than expected, it is true that they were more or less in line with forecasts. In contrast, the results of previous months showed greater superiority, which some analysts could see as a sign of weakness in the evolution of Adobe.
During the last few months, this stock has followed an upward trend that underwent a strong impulse after breaking upwards out of the sideways channel the price had previously been making between its downtrend line and its support level at 437 USD per share.
After breaking this level, the price has been progressively supported by its 18-session moving average in white, until reaching its historical highs at 673.82 USD per share – where it began a correction to the 23.8% Fibonacci level.
However, if we look at the daily chart, the price shows a large negative divergence with its MACD indicator. Therefore, we must be attentive to the evolution of the price in the coming sessions, as we could see a further correction.
Evolution of the last five years:
- 2020: 51.64%
- 2019: 45.78%
- 2018: 29.10%
- 2017: 70.22%
- 2016: 9.59%
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