Adobe's stock price (NASDAQ:ADBE) went on a surprising rally last month, gaining 18.96%. Owning to the impressive bump, it created a double-bottom bullish reversal pattern, breaking out of the neckline hurdle and demonstrating strong bullish sentiment. Days prior to the breakout, Adobe Inc. (NASDAQ: ADBE) released the desired Previous Quarter Earnings on May 15, 2023, achieving the EPS and revenue estimates.

The ADBE stock price is currently above both the 50 and 200-day EMAs, which demonstrate an overall uptrend in the stock. Additionally, looking ahead, there could be a potential golden crossover, with both EMAs reversing upward. Despite the increased momentum, there could be a slight correction or profit-taking in the coming weeks owing to the over-extension of the rally.

The stock price closed the previous session at $377.92 with an intraday decline of -0.38% and a market capitalization of $173.35 Billion. The resilience of the price can be attributed to a 20% drop in the prices, instilling investor confidence. This led to the development of a double bottom pattern, however, subsequent attempts to cross the $400 barrier were unsuccessful, instead forming a long-tail bearish candle.

Looking ahead, the stock will remain in the buyer's court until it holds the level of $360.00. In the current financial climate, this is likely to increase the possibility of the stock reaching and surpassing the $400 mark. On the other hand, if the prices fall below the aforesaid level, $340.00 and $320.00 marks could act as possible supports.

The weekly chart creates the image of a Doji candle, a situation where the opening and closing prices are similar. This signifies that the stock is currently in an over-extended position, and could consolidate in the coming days before deciding its direction. Additionally, the MACD generated a negative crossover, albeit with a relatively flat curve, emphasizing the possibility of range-bound trading in the near future. Finally, the RSI, at 56, is very close to the neutral territory, indicating a state of balance between the bears and bulls.

In conclusion, Adobe stock price has shown remarkable strength to recover and rally in the past month, creating a double bottom pattern. The technical indicators suggest that until the stock holds the $360.00 level, it could potentially cross the $400 mark, given the bullish market sentiment. The supports are present at $340.00 and $320.00 in case of a decline.



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