Wednesday, October 20th, 2021

Autodesk(NASDAQ: ADSK) is at the verge of breaking all time high. Is it worth to invest now?

Autodesk, Inc. (NASDAQ: ADSK) is a multinational information technology firm that specializes in 3D design, engineering, and software. On the list of the best 3D printing and additive manufacturing stocks to purchase, it ranks seventh.

According to a survey, the global 3D printing industry was worth $13.78 billion last year, and it is predicted to be worth $62.79 billion by 2028, representing a CAGR of 21% between this year and the forecasted year of 2028. The number of 3D printers shipped in 2020 was a stunning 2.1 million last year, and that number is predicted to rise to almost 15.3 million by 2028. These figures show how the 3D printing or additive manufacturing sector has recently taken the world by storm and is predicted to continue to grow in the future.

The Biden administration and senators are working out the details of a bipartisan infrastructure measure worth more than $1.2 trillion. Roads and bridges, public transportation, internet, water, and power utilities will all benefit from the cash, which will be spent over the next decade. An Infrastructure Bill might also benefit Autodesk, which makes building and engineering design software.

Autodesk, Inc. (NASDAQ: ADSK) posted an EPS of $1.03 in the fiscal first quarter of 2022, exceeding projections by $0.03. The company’s revenue was $989.30 million, up 11.7 percent year over year and $24.54 million higher than expected. Autodesk, Inc. (NASDAQ: ADSK) has also increased by 25.25 percent during the last year.

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Autodesk(NASDAQ: ADSK) is at the verge of breaking all time high. Is it worth to invest now?

Autodesk(NASDAQ: ADSK) is at the verge of breaking all time high. Is it worth to invest now?

On July 30, Autodesk stock was on the verge of breaking out above its last level of 321.13 since mid-January of this year. A breakout from the all-time high looks very possible for this stock as momentum in the share price is very strong.

Price Target for Autodesk(NASDAQ: ADSK)

The chart has been forming an inverse bullish head and shoulders pattern since mid-January this year. On a successful breakout from the inverse head-and-shoulders pattern, the immediate price target is around $356.

Price Target for Autodesk(NASDAQ: ADSK)

Looking at it from another angle, a triangle pattern has formed from February 22 to July 21. If we take a price projection from the base of the triangle to the breakout point, the price target should be around $355, which is consistent with our previous price target projection level.

Since both price target projections are nearly identical, we believe the $355 price target is quite achievable if price does indeed break out above its recent high.

Price Target for Autodesk(NASDAQ: ADSK)

However, from an indicator perspective, the price is considered overbought in the short term. The price has crossed the upper band of the MA Env indicator. The spread between the positive and negative indicators of the Elder Ray indicator and the Random Walk Index indicator is relatively wide.

At this point, the 3 indicators signal that the price has risen too far in the short term and a price correction is possible.

Price Target for Autodesk(NASDAQ: ADSK)

In the event of a price correction, our proprietary Support/Resistance indicator shows that $301 is likely a good support level. This level also coincided with the support level of our other proprietary indicator, Volume Profile. This level is where VP ‘s volume has been lowest over the last 50 bars. Therefore, $301 is a good support level in case of a setback, but this does not necessary mean that the price has to reach this level before making a new high.

Assuming a trader buys Autodesk at $310, he can gain around 14% from the trade when the price eventually reaches its target of $356.

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