Major Resistance price at about ~300
Spent about a year in 2020 to 2021 crossing this level.
When this level was broken, the price cracked down to 90.
A good level for partial profit booking.
Positive Signs:
Bounced back from the Upward trendline running from October to May.
Bounced back from the upper part of the flag pattern formed in the last quarter of 2022
Spent just a week below 50DMA & 200DMA and bounced back
Negative Signs:
Volumes are average
Resistance around 385-400 price
Recommendation:
Sell near 385-400 resistance zone OR...
There are three +ve indicators (suggesting buy)
1. Price moved above 50DMA with good volume on 16th March
2. Price moved above 200DMA with good volume on 17th March.
3. Golden-Crossover (50DMA above 200DMA) on 21st March.
However, the volumes are still lower than average and the price is stuck between 385-400 range, suggesting profit booking in this...
Strategy: Wait & Watch till the Quarterly result this month.
Best case: Break out above 440 can take the price to 530-540
Worst case: Break down below 380 can 300-310
Or may it may remain in this tight range of 380-440
Adobe has been consolidating from 450-500 range since August-2020. In a way it's been generating a flag formation since the lows of March-2020.
It's currently at a very crucial level of 450 and it's important that the stock doesn't fall below 450.
On the positive side, if the price breakout can happen above 514 the immediate levels would be 600 & 740. These can...
Adobe Spent over 7 months between ~450-500.
Stock price & moving averages are at a very crucial level and near the lower edge of the consolidation window.
The possibilities are:
1. Adobe doesn't come back to 475+ levels by end of week (5-mar). Shows some weakness for coming weeks.
2. Adobe closes below 450, then the fall could be till 380-390. This aligns well...
If Adobe goes above 470 with a spike (in a day or within a week) Then it has a high probability to increase by 25-30% in 2-3 months. i.e. target of 600+
If Adobe goes below 420 then the fall can be down to 370-380.
I'm bullish on this share because it's in in uptrend on the monthly charts.
Green Line & Red Line are cloth of the flag.
Height of Pole = ~4700
Potential target = 5450 & 5300 (Yeah, looks unrealistic but... that's what the technical charts say)
Based on the duration of flag formation... We should reach this by mid June.
