Stock of the day: Adobe
26 May 2023
Let us finish this week with an update on the Adobe situation. Previously, we analyzed this instrument on May 19 and back then, we were bullish. This is how I concluded my previous piece:
“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.”
This was the case on Friday as well and I can say that Adobe had an amazing week, fulfilling 100% of the bullish plan. The key day was yesterday, as the price managed to break the upper line of the triangle and surged higher to flirt with the yearly highs established at the beginning of February.
With that breakout, the sentiment here is definitely positive and the buy signal is ON. It will remain like this as long as we stay above the upper line of the triangle; and chances of that happening are huge.