Bear Flag in Adobe?Adobe trended lower most of 2024, and now some traders may expect another push to the downside.
The first pattern on today’s chart is the series of higher lows since mid-January. The software company recently slid below that line, which may be viewed as a bear flag breakdown.
Second, bearish gaps after the last two earnings reports could reflect weak sentiment.
Third, ADBE has been unable to get above its falling 50-day simple moving average (SMA). That may indicate a negative intermediate-term trend.
Also notice how the 50-day SMA is under the 100-day SMA and both are below the 200-day SMA. That configuration, with faster SMAs below slower ones, may indicate a negative long-term trend.
Next, the 8-day exponential moving average (EMA) just crossed below the 21-day EMA. MACD is falling as well. Those patterns may be consistent with bearishness in the short term.
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