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Fan Yang

Adobe Inc. (ADBE) at a Key Resistance Cluster

Adobe Inc. $ADBE has been recovering since it tagged $205 back in December 2018. Price is now approaching $250. In fact, last week, price almost tagged $250, but found resistance to close Friday's price action at $247.50. This $250 area will indeed be a key resistance that should hold if ADBE is still in correction mode. 

ADBE Daily Chart

(click to enlarge)

Resistance and Scenarios:
- As we can see on the daily chart, price is right in the middle of the 200-, 100-, and 50-day simple moving average (SMA) cluster.
- Also, price is rubbing up against a falling trendline. 
- Meanwhile, the RSI is right around 60, and if the market is still in bearish correction mode, the RSI should stay below 60.
- If price does hold here at $250 and falls below $239, ADBE would likely still be in bearish correction mode and would likely test the $205-$210 support area again. If price does reach here, we can anticipate extension lower.
- However, if $250 breaks, price has upside to $260-$265, a common resistance.
- Holding resistance around $260 would be a sign that the market is still in consolidation mode. However, in this scenario, I expect strong support around $210, because the market is likely no longer in bearish correction mode. If it is in consolidation mode, $210 would be a key support.

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