Autodesk (US): Deep Correction Expected

The primary uptrend has lost all conviction. The lack of new highs and increased pressure on support suggest a strong down leg is imminent. Trigger for this bearish outlook lies at 112.10. Closing below this level should entice sellers towards 99.60<>96.60. Here the pivots of June coincide with the bearish intraday Fib projections.

On the medium term a deeper correction is fairly likely, with support coming in from 91.20 up to 83.40.

TECHNICALS

  • Primary trend: neutral
  • Outlook: end of uptrend, deep correction expected
  • Strategy: exit-long and/or trading-short below 112.10
  • Support: 112.10 / 99.60 / 96.60*
  • Resistance: 116.90
  • Outlook cancelled/neutralized above 119

FUNDAMENTALS

  • Description: Autodesk (ADSK) supplies PC software and multimedia tools. The Company’s two-dimensional and three-dimensional products are used across industries and in the home for architectural design, mechanical design, geographic information systems and mapping, and visualization applications. Autodesk’s software products are sold worldwide through a network of dealers and distributors.
  • Market Cap: USD 24.9 bln
  • Current P/E ratio: n/a
  • Dividend Yield (TTM): n/a
  • Earnings per Share (TTM): USD -2.6

Weekly chart Autodesk (Nasdaq)