ADBE Adobe Daily and Weekly Charts; Oversold; Positive Divergence; Lower Band Violations

Keystone puts on the Kevlar gloves as he attempts to catch the Adobe falling knife. He also has Band-Aids and gauze available if the knife penetrates. Talk about a piece of excrement. ADBE was a stock market darling a long time, until it wasn't. ADBE crashes from 550 to 250 in 1-1/2 years a -55% drubbing. That's gonna leave a mark. Adobe was ridden hard and put away wet. Nasty. She asks, When Will I Be Loved? Linda had the one in a million voice.

And of course what happens when you are down and out? Yep. Someone comes along and kicks you in the face. It is always darkest before, it turns completely black. At the end of last year, fear ran through the internet stocks and private credit tickers due to AI disruption fears. Adobe fell off a cliff at that point and the investors that held on to the Adobe piece of crap through thick or thin finally gave up and threw in the towel. You know what happens when everyone gives up on a stock, right? It is usually, but not always, time to buy it.

Note that a nice bottom was in for ADBE at Thanksgiving and a positive divergence launch was in play (thin green lines). Price pops for a couple weeks and flattens in December but the bad AI news hit and she fell out of bed. Positive divergence is in play now across all indicators for both the daily and weekly charts (green lines) so a bounce should be on tap. Keep watching the money flow on the weekly chart. It is possie d but showing further possible weakness due to the exodus from the stock. If money flow makes a lower low, ADBE may need to jog for a couple weeks at these lows before rallying.

Note the purple arrows on the weekly chart showing the tight standard deviation bands. Tight bands signal a huge move on tap but do not predict direction. Bloop. The squeeze was down the rabbit hole of despair.

Price violates the lower band on the weekly so a move to the middle band at 305, and falling, is on the table. The daily chart barely tagged the lower band but it is good enough for government work. Price may still want to come down to officially tag 240 with a big ole sloppy wet kiss like pretty little Bunny provides. Bunny is a Labrador.

Adobe was taken to the shed out back behind the abode and beaten severely, however, the worst may be over. A bounce would be expected over the short-term (a few weeks). ADBE should bounce from here due to the possie d explained above but if not, it should bounce over the coming days. Simply make sure the possie d remains in place since that is the fuel that will shoot price higher.

Keystone bot ADBE long this afternoon during the stock market beating and will give her a whirl for a little while. The longs that have held on to the beaten-down and frazzled stock the last few months are asking pretty Adobe to not hurt me, don't hurt me, no more. What Is Love by Haddaway with shuffle dancers. This information is for educational and entertainment purposes only. Do not invest based on anything you read or view here. Consult your financial advisor before making any investment decision.