ADSK August 20th Play
One of the tech stock that I’m looking into is ADSK that just released their quarterly earning report and got more than 5% price boost because strong reports. Fundamentally, the company increased their Q3 outlook from $520M - $530M to $530M-$540M, well above the consensus of $528M. This only means that the company is certain that they can sell more of their software in the market above previous expectations. And seeing how the company is dominating the 3D Landscaping software market, it’s been no surprise that they increase their projections and receive an upgrade from Bear Stern from Peer Perform to Out Perform.
From technical point of view, this is a good play short term. Click at the chart.
From my point of view, ADSK is a good long candidate if it breaks the horizontal resistance line that has been hold since last January. The second position to open in this stock will be when the stock can close above the second resistance that I drew (see the chart). That line is the old trend line support that has been a new resistance from July till September last year.
I also have a long-term play on this stock based on the big picture. Click the chart below.
Buy only when the stock close above the long term horizontal support/resistance line. That line hasn’t been breached at least since early 2005 and will confirm an ascending triangle pattern with a very high target price. Still, in this market, be prudent and be patience as always.
