ADBE Stock Price: Adobe to Retrace After Bullish Breakout

Adobe Inc. (NASDAQ: ADBE) has been bullish for the past few months, but the April bulls might be exhausted and may let ADBE stock price tumble. The digital marketing and media solutions firm has been facing neck-to-neck competition from its rivals. The company has been under the bullish influence since the beginning of March when the company recorded strong financial performance. Earlier, Adobe partnered with Prada to enhance in-store customer experience.

Another firm, General Motors picked Adobe Experience Cloud product to deliver personalized interactions with customers. Software maker Adobe partnered with security software and services provider BlackBerry to deliver a secure solution for mobiles. These recent alliances may have had a positive influence on the stock price.

Financial Firmness for Adobe

Adobe Inc. has moderately strong financials. The company holds a higher P/E ratio than that of the industry, indicating high growth potential. The profit margin ratio for Adobe is 87.66%, about 1.35 times for the industry’s profit margin of 64.22%. The company has a return on investment of 28.88%, making it a gradual-growth stock.

Per the earnings reported by Adobe Inc., revenue surpassed estimates. The reported revenue was $4.655 billion, 0.69% more than the estimate. The earnings for the company was reported to be $3.80, a 3.26% rise, withholding the shareholders’ hopes high.

ADBE Stock Price – Technical Analysis

ADBE stock price formed a double-top pattern and witnessed a bullish breakout after a positive 2022 earnings report. Later, the bullish breakout slowed and formed a rising channel. The rising price could face rejection near $400.05 and retrace back to the support near $364.90. Although the target support is a weak one, if breached, the falling price could reach $319.03. The EMA ribbon forms a bullish cross, negating chances of a bearish pattern.

The slowing bullish momentum is noted with the indicators giving negative signs. The RSI moves horizontally and suggests declining bullish intent. The MACD nears a convergence and starts to record declining buyer bars. The indicators suggest a consolidation phase for ADBE stock price.

Conclusion

ADBE stock price is consolidating. The stock price is transforming from bullish to bearish rapidly. New partnerships and strong financial reports gave ABDE stock price a bullish breakout. The price may fall soon to correct the rally. The holders can rely on the support near $319.03.

Technical levels

Support levels: $319.03 and $275.18

Resistance levels: $400.06 and $442.03

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.