Adobe (ADBE) Shares Plunge Over 8%

Adobe Inc. (ADBE) shares took a significant hit on Friday, following the release of its third-quarter financial results. Despite beating analyst expectations on both earnings per share and revenue, the company’s disappointing fourth-quarter forecast sent the stock tumbling over 8%.

Technical Analysis

• Upward Channel: Prior to the earnings report, Adobe’s stock was trading within an upward channel, suggesting a bullish trend.

• Resistance Test: The price had reached the median line of this channel, which acted as resistance.

• Psychological Break: The stock briefly broke above the $500 psychological level but was unable to sustain the gains.

Outlook

While the disappointing forecast may continue to weigh on ADBE’s stock price, there are signs that bulls may be starting to re-enter the market. The Friday candle closing above its midpoint suggests that some investors viewed the price drop as a buying opportunity.

Potential Support Levels

• $500: The psychological level of $500 could provide support.

• Lower Channel Boundary: The lower boundary of the upward channel may also act as a support level.

Analyst Consensus

According to TipRanks, analysts have an average price target of $620 for ADBE stock over the next 12 months, implying a potential upside of 15% from current levels.

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