Despite an earnings report that beat consensus estimates, and despite a stock buyback plan initiated on June 24th (usually positive for a stock), Adobe Systems stock, ADBE, has come crashing down since its earnings announcement on June 23rd. While news of Adobe’s lack of Flash support on most phones, most notably the iPhone, has added to the selling pressure, the stock’s nose dive has been way over-done. And the chart seems to agree with my sentiment:

As indicated above, there is long-term support for ADBE around the $26 - $26.40 level. Also, the stock finds itself far and away from the lower bollinger band. More often then not, a stock reverses direction pretty quickly once this occurs.

On a short-term note, the relative strength index is under 30, currently residing at the 22 level. This may serve to indicate that the stock is ripe for a comeback, as anything below the 30 level signals oversold conditions. While I’m not sure if this is a good thing, Standard & Poors also has rated Adobe as a strong buy, giving it 5 Stars on June 29th. It’s 12-month price target stands at $44.

All in all, ADBE looks like a good value play.