ADBE Stock Forms Double Top at Higher Levels; Will It Hit $500?

The ADBE stock price has witnessed a decline of $10.87 in the last trading session.
Adobe Inc. has witnessed consistent advances in its revenue.

Adobe Inc. (NASDAQ: ADBE) is also known as Adobe Systems Incorporated and it is an American multinational computer software company. It was founded in 1982 by John Warnock and Charles Geschke. The company has its headquarters in San Jose, California, known as Adobe World Headquarters. The company provides its services worldwide and the current CEO and Chairman of the company is Shantanu Narayen.

Adobe Inc. recently announced its third quarter results of 2023 and reported a revenue of $4.59 Billion. ADBE stock has a PE ratio of 50.36 which indicates that investors are willing to buy the stock at higher prices.

The Beta of the ADBE stock is 1.91 which denotes its higher volatility compared to the overall market. Currently ADBE stock has 451.956 Million shares floating in the market. In Q3 2023, the PE ratio of the stock has advanced by 39.7% year-on-year.

ADBE stock has a good ROE of 34.79% which has advanced by 1.6% in the third quarter. Additionally, the total debt of the company has declined by 11.7% resulting in $4.10 Billion. The current debt/equity ratio of the company is neutral at 25.96%.

Adobe Inc. Stock Performance Analysis

Source: Tradingview

Adobe Inc. made a total revenue of $17.43 Billion throughout the whole year. It also reported a net income of $4.76 Billion. This resulted in a profit margin of 27.29% and the company also reported overall debt of $4.63 Billion for the same year. It faced operating expenses of $9.174 Billion.

Technicals and Analyst Rating For ADBE Stock

Source: Tradingview

The technicals for the ADBE stock including various oscillators and moving averages, are bullish on the daily charts. Adobe Inc. has met the revenue expectations of the experts over the years and has also performed well in terms of its EPS. This makes the analysts bullish on ADBE stock and the experts are expecting a target price of $660.00.

Adobe Inc. Stock Facing Resistance Twice At The Same Level; Time To Sell?

Source : ADBE: 1D: NASDAQ

ADBE stock started to advance from the end of September from the level of $275 to a high of $575. The stock price has been consistently forming a pattern of higher highs and has witnessed a huge advance of more than 100%.

After consistently advancing to higher levels, the stock price has formed a double top pattern at the level of $575.00. The stock price is currently forming a bearish candlestick pattern breaking down below the low of the previous day. This indicates bearishness in the stock chart.

The 50-day and the 200-day EMAs are trading in a golden cross. The stock price is also currently trading above the EMAs. This indicates that the stock has been following an uptrend till now.

ADBE stock’s RSI is currently indicating bullishness, advancing above the 50-level. It has also broken above the 14-day SMA.

Conclusion

ADBE stock has been following an uptrend for a long time and is currently facing resistance at the previous swing high. The indicators for the stock are bullish and the RSI is also indicating an uptrend. Looking at the current scenario we can expect a decline in the stock price in the short term. In the longer term, the stock price is bullish unless it breaks below the support level of $500.00.

Technical Levels

Support levels- $445.00 and $500.00
Resistance levels- $575.00 and $700.00

Disclaimer

The information provided in this article, including the views and opinions expressed by the author or any individuals mentioned, is intended for informational purposes only. It is important to note that the article does not provide financial or investment advice. Investing or trading in cryptocurrency assets carries inherent risks and can result in financial loss.