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Adobe Systems (ADBE) Just Flashed Golden Cross Signal: Do You Buy?

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After reaching an important support level, Adobe Systems (ADBE - Free Report) could be a good stock pick from a technical perspective. ADBE surpassed resistance at the 20-day moving average, suggesting a short-term bullish trend.

The 20-day simple moving average is a well-liked trading tool because it provides a look back at a stock's price over a 20-day period. Additionally, short-term traders find this SMA very beneficial, as it smooths out short-term price trends and shows more trend reversal signals than longer-term moving averages.

Similar to other SMAs, if a stock's price moves above the 20-day, the trend is considered positive, while price falling below the moving average can signal a downward trend.

Over the past four weeks, ADBE has gained 7.2%. The company is currently ranked a Zacks Rank #2 (Buy), another strong indication the stock could move even higher.

The bullish case only gets stronger once investors take into account ADBE's positive earnings estimate revisions. There have been 13 revisions higher for the current fiscal year compared to none lower, and the consensus estimate has moved up as well.

With a winning combination of earnings estimate revisions and hitting a key technical level, investors should keep their eye on ADBE for more gains in the near future.


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