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- 1 Adobe stock price defends $500 support and is trying to climb above the 50-day EMA.
- 2 ADBE stock price corrected 11% from the recent swing high.
- 3 The share price of Adobe Inc. still sustains above the 200-day EMA.
Adobe stock price showed a minor bounce of 3.70% in the previous session and is trying to climb above the 50-day EMA. It formed a bullish reversal candle after seven days of consecutive falls.
ADBE stock price took support near $500 and buyers came forward to push the price higher. If they succeed in regaining the 50-day EMA then the short-term trend might reverse in an upward direction.
Previously, Adobe Inc. stock price attempted thrice to break out of the $560.00 hurdle. But every attempt failed and sellers succeeded in reverting the prices down.
In the recent down move, the selling volume also surged, indicating that some long-term investors preferred to book profits.
Meanwhile, the whole technology sector and broader market witnessed a correction. So, it also indirectly impacted the ADBE stock.
At present, the Adobe share is near its demand zone and buyers are getting active. So, the pull back may continue for a few more sessions.
However, the question remains the same. Is the recent upmove reliable and should the buyers can hold the higher levels or not? Let’s look at the technical analysis to conclude better.
Is the Recent Up Move in Adobe Stock Price Reliable?
Adobe stock price is recovering and showed initial signs of reversal. However, the up move is not supported by a high buying volume. Moreover, due to the fall of seven consecutive sessions, it is obvious that a bounce back will come.
Until the ADBE stock breaks out of the $550.00 hurdle, the probability of getting rejection will remain high. On the other hand, till Adobe share price holds $500, creating fresh shorts will also be risky.
The technical analysis suggests that the upmove in ADBE stock price looks temporary. So, short-term bulls might take this opportunity to exit on higher levels.
Will ADBE Stock Price Give Follow-Up Momentum?
ADBE stock price closed the previous trading session at $526.94 with a one-day rise of 3.70%. It will be interesting to see whether buyers can give the follow-up momentum or not.
The price action tells us that the Adobe share price has not bottomed yet and more downfall is possible in the coming months. The MACD curve still slopes down indicating bearishness. However, the RSI at 47 reverses upward and is likely to test the neutral territory soon.
Conclusion
Adobe stock price rose 3.70% and showed a minor bounce from the crucial support. However, the recent pullback does not look reliable and it will be difficult for the bulls to reverse the trend.
The analysis suggests that ADBE stock price has not bottomed out and more downfall is possible.
Technical Levels
- Resistance levels: $450.00 and $474.07
- Support levels: $498.88 and $471.22
Disclaimer
The views and opinions stated by the author, or any people named in this article, are for informational purposes only. They do not establish financial, investment, or other advice. Investing in or trading crypto assets comes with a risk of financial loss.
Steve Anderson is an Australian crypto enthusiast. He is a specialist in management and trading for over 5 years. Steve has worked as a crypto trader, he loves learning about decentralisation, understanding the true potential of the blockchain.
