Three Stocks: Microsoft, Adobe, and Lowe's

Microsoft

Microsoft (MSFT) stock is breaking to new all-time highs as the company dropped details on their new product lines.

Among the releases are new surface and other PCs that debut the use of Copilot+ features. The computers and Copilot+ represent Microsoft’s movement to monetize their advances in AI, representing the next large revenue stream from the technology innovation.

Shares dipped below $400 after their most recent earnings report, as the company was a little lighter than Wall Street expectations with their forward-looking comments.

Last week, shares moved back above the critical 50-day moving average, putting the stock back into a bull market trend as it approached new all-time highs.

Wall Street analysts’ currently hold an average price target of $481, meaning the stock has plenty of room to run higher before expecting any upgrades.

The chart suggests that we will see an acceleration towards $450 over the next four to six weeks.

msft stock chart

Adobe

Adobe (ADBE) has gone from an AI darling to sitting in the corner while everyone else is dancing.

Shares are trading 1% lower today as the stock risks breaking critical support at $475.

Since February, shares have been locked in an intermediate-term bear market trend as the stock’s 50-day moving average shifted into a declining pattern. Resistance has been met with every attempt of the stock to break out of this pattern.

More recently, shares have been trying to hold critical support at $475 to avoid shifting from an intermediate-term bear market to its first long-term bear market trend since June of 2023.

A break below $475 will put the stock in a position to move just 4% lower to break its 20-month moving average, placing it in a technical bear market.

Selling pressure will increase from institutions with a break of the stock’s 20-month, targeting further declines to a target of $400.

adbe stock chart

Lowe’s

Lowe’s (LOW) shares are trading 2.4% lower today after the home improvement warehouse announced their quarterly earnings results.

Results for the company’s past operations were better than analysts’ expectations. Earnings per share (EPS) beat expectations by $0.11 while revenue came in slightly higher than its target.

The drop in price is due to the company’s comments, that are all but too familiar for the market.

Lowe’s sales saw pressure from lighter consumer activity on high priced purchases. The situation is part of a much larger trend as you and I pull back on expenses due to the long-term effects of inflation.

Lowe’s stock has been trending in a tight range around $230 for the last month but are now threatening to break below $220.

A move below $220 will put the stock below its 200-day moving average for the first time since January of this year.

The last break below its 200-day moving average resulted in a 13% decline for Lowes stock over a one-month period in October of 2023.

My current price target is $200.

low stock chart

About the Author

Chris Johnson (“CJ”), a seasoned equity and options analyst with nearly 30 years of experience, is celebrated for his quantitative expertise in quantifying investors’ sentiment to navigate Wall Street with a deeply rooted technical and contrarian trading style.

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