Adobe Systems ( NASDAQ: ADBE) stock showed an inclining move and tried to close above the barrier of $500, but bulls faced rejection and closed below the bar and a bearish marubozu candle was noted in the last trading session. ADBE stock has made a day high of $518 at the opening, but soon bears engulf the potential of buyers and laid it down below $500.
The price action now shows that, after the range breakout of $400 above the neckline of the consolidation range, buyers led the charge and continued to sparkle the gains without taking a pause. Moreover, sellers were getting trapped during this bullish rally resulting in the short covering move of the stock resulting in the stock to fly more highs above the bar.
Adobe Stock is now trading in uncharted territory where buyers has attained their traction and continued to uplift gains.Moreover, the long buildup activity was continued by mature investors.
In the last session, a bearish candle was formed and buyers faced a rejection on the top which became a concern that, follow on candle will be a decision candle which confirmed that this move was fake or either sellers were starting to engage in the stock.
Adobe Inc. is a software company. The Company offers products and services that professionals, marketers, application developers, enterprises, and consumers use for creating, managing, measuring, optimising, and engaging with compelling content and experiences.
Daily Charts Shows Short Covering move
On the daily charts, ADBE stock was unable to close above $500 and showed seller engagement in the last session, where buyers faced pressure and does not able to continue the ongoing rally. However, the trend was still bullish and bulls have a strong grip maintained from the past trading sessions.
If stock sustains above $500 in the next sessions, then further buying will led to break the mark of $518 and more bullishness can be seen.
On the other hand, if sellers succeed to form a follow on selling with a bearish candle breaking below the previous one below $490, then momentum will shift in favour of sellers and it can head to retest the primary support mark of $475. Furthermore, during the bullish rally, a gap was remaining which sellers were willing to revisit soon.
At press time, Adobe stock was traded at $495.18 with an intraday gain of 0.87% showing buying perspectives. Moreover, the trading volume in the intraday session was noted at 13.344 Million gaining by more than 20% showing massive spike.
What Traditional Indicators Say?
On the 4-hour chart, ADBE stock gained a massive reversal from the narrow range and continued to surge. The stock has pumped up after the pennant breakout above the neckline of $400. Afterward, it did not look back and continued to fly higher.
The RSI curve showed a reversal from the overbought zone and a negative crossover was also showcased showing sellers were showing their presence and starting to make short positions.
The MACD indicator showed a surprise bearish crossover due to the recent formation of bearish marubozu candle in the last trading session.
Conclusion:
Adobe Stock was enjoying an uptrend and maintained gains near $500, indicating a positive outlook.
Technical levels:
Major support: $475
Major resistance: $520
Disclaimer:
The views and opinions stated by the author, or any people named in this article, are for informational purposes only and do not establish financial, investment, or other advice. Investing in or trading crypto assets comes with a risk of financial loss.
Andrew is a blockchain developer who developed his interest in cryptocurrencies while his post-graduation. He is a keen observer of details and shares his passion for writing along with being a developer. His backend knowledge about blockchain helps him give a unique perspective to his writing
Source: https://www.thecoinrepublic.com/2023/06/19/will-adobe-systems-adbe-sustain-above-the-sweet-spot-of-500/