Public trading strategy
Adobe leadership exodus spooks investors — contrarian bounce play on the dip
Thesis
Adobe is a highly profitable, dominant software company. While Wall Street hates sudden management changes and analysts are downgrading the stock today, the underlying business still makes billions. In situations like this, the initial sell-off is often overdone. Once the dust settles, value buyers usually step in, making this a classic dip-buying opportunity.
Strategy approach
Build a rule-based mean-reversion strategy that enters long ADBE on the 1-day timeframe. Entry conditions: RSI(14) drops below 35 (oversold) or price closes 2 standard deviations below the 20-day Bollinger Band. Exit conditions: price returns to touch the 20-day SMA, a 15% stop loss, or a 21-day max hold period.
Markets and timeframes
ADBE1D