Stock of the day: Adobe

By Tomasz Wisniewski|

Published: October 02 2023, 12:05 GMT+0

Stock of the day: Adobe

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Today’s technical spotlight is on Adobe, a software giant with a rich legacy in the creative world. When looking at the long-term picture, we observe that the company’s stock price formed a symmetric triangle pattern demarcated by black lines. This consolidation was followed by an intriguing false breakout to the downside, highlighted with a shade of blue. In the trading realm, such false breakouts often serve as strong contrarian signals, pointing towards a potential upward movement.

Acting in accordance with this principle, Adobe’s stock did experience an uptrend. However, this bullish momentum eventually shaped into a triple top formation, delineated with a yellow color on the charts. The triple top is traditionally viewed as a bearish reversal pattern.

The second half of September proved to be a crucial juncture for Adobe, as the stock price decisively broke below the neckline of the triple top formation, depicted by a red line on the charts. This break below the neckline, in classic technical analysis parlance, confirms and activates the bearish implications of the triple top pattern.

Given the current landscape, the outlook for Adobe leans towards the bearish side. The sell signal remains potent, especially if the price sustains its position below the aforementioned red neckline. Traders and investors should keep a vigilant eye on this level, as it serves as a pivotal reference point in dictating Adobe’s future price trajectory.

Source: https://www.axiory.com/analytics/stock-of-the-day/stock-of-the-day-adobe-3

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