Stock of the day: Adobe
19 May 2023
This absolutely bullish week for stocks will finish with an update on Adobe that we previously mentioned on May 5. Back then, the situation was not optimistic and we were bearish saying:
“The breakout of the lower line of the triangle is definitely bearish and gives us a proper signal to sell. The target is the lows from the previous year, and the chances that we’ll get there are quite high.”
So, what happened here is that we indeed did get a breakout, but in the next few days it turned out to be a false one. Sellers tried again on May 12, but this attack failed, too. In the end, the price created a double bottom formation and a false breakout pattern (green). A false breakout is usually an amazing signal to go long and, most probably, that will be the case here as well. We are back inside of the symmetric triangle pattern (black) and chances of a breakout to the upside are currently much higher than another attempt to go south.