FREE Guide: 6 Fibonacci Types that Create the Most Precise Price Levels, Targets, and Reversal Zones

June 14 Chart of the Day - Adobe

Precision oriented price action technical analysis by far provides the best edges and most setups for traders and investors across the markets so that's what we use for the basis of our reviews

Adobe Inc. (ADBE) is making headlines today as its stock price posted the biggest gain in more than four years after the company projected strong future sales for its creative products, suggesting customers are adopting the company’s new artificial intelligence (AI) based tools.

So for just about any mature type company like Adobe that is adopting AI we like to review their chart from a price action technical analysis perspective.

We have featured over 220 Charts of the Day during the past year and teach Price Action Trading for FREE  to traders who join our Highly Rated Trade Room.

Monthly Chart 

Adobe monthly price action technical analysis review

On the monthly chart we can see that after setting its $699.54 all time high (ATH) back in November 2022 price fell dramatically over the next year melting through many potential support levels.

The bulls stepped in around the $275 level in September 2023 and rapidly ascended making a series of higher highs and higher lows back up towards ATHs before being forcefully rejected just a tad over $635.

Weekly Chart

Adobe weekly price action technical analysis review

 
On the weekly chart we can see with much more clarity the dramatic fall from ATHs and where price tagged $275 which reversed the downward cycle.

Trading above $530 earlier today price has been making a series of higher highs and higher lows since bouncing at $440 which is a normal and customary cyclical  price action behavior.

During the past few weeks price crossed a change control zone (gray rectangle) roughly between $450 and $468 a couple of times making that a whopping 24 zig zags across the zone during the past four years.

Change control zones are one of the five price action tools we teach when charting anything.  By definition, they are an area that represents where neither the bulls nor bears are in charge.  Price can slash though the zone with seemingly reckless abandon, price can respect the top or bottom from outside it or within it.  Or, price can trade aimlessly sideways within it.  When price breaks away from the zone it can often get drawn back to it like a magnet. And in this case we see all of the above are true.

Price seemingly is nearing an area on the chart ($535) that could possibly the next decision zone.  While it's not the last chance for the bears to step in to push price back lower it is an area of interest where support/resistance, trend and a 50% bear Fibonacci level essentially all meet together that slowed the meteoric rise today at least temporarily

But, only time will tell for sure what price will do next...

We've layered in traditional Fibonacci levels as well as support/resistance and trend to help identify potential price levels of interest and/or future price targets.

Armed with precision oriented charts like these both traders and investors can formulate their respective plans.

So what's next? 

We don't make predictions...

Nobody knows for sure but using these 5 price action tools traders and investors can develop levels of interest in both directions.

  1. Support/Resistance
  2. Trend
  3. Fibonacci 
  4. Supply/Demand Zones,
  5. Change Control Zones

ChartPros provides the exact methodology in its price action technical analysis courses to create charts like this with the most precise and accurate levels from which investors and traders can formulate their respective trade plans.

Take a look at the charts and let us know what you think.  

We'd like to hear from you in the comments sections.

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