Adobe Inc (US: ADBE) corrective stance is over for now after prices breaks out of the upper bound of the larger bullish flag. However, to confirm the bullish upside further, Adobe needs to clear above the resistance zone at US$528.53-US$536.83. Technical shows that the probability to break new high is high:
- Adobe Inc throwback to the support zone at US$507.29-US$520.99 after the formation of an evening star is met with a failure to push prices beyond the support zone lower after a morning star formation came back strongly.
- The throwback retracement resembles a bullish flag formation and as such, the stock is potentially continuing the upside from the impulse upside from US$425.00-US$520.99.
- The 22-day moving average crosses both the 50 and 200-day moving average at the same time and result in a stronger than ever bullish crossover.
*Timeline of the trade is 6 weeks from the date issued.
Red dotted line = 200-MA
Blue dotted line = 50-MA
Green Line = 22-MA
We do not base our recommendations entirely on the above quantitative return bands. We consider qualitative factors like (but not limited to) a stock`s risk reward profile, market sentiment, recent rate of share price appreciation, presence or absence of stock price catalysts, and speculative undertones surrounding the stock, before making our final recommendation
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