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Fan Yang

Adobe Systems (ADBE) Reacts at Key Support with Strong Volume

Adobe Systems $ADBE has been consolidating since July after price found resistance just above at $310. This comes after a 2019 run from a low around $205. As price retreated, we anticipate support around $280/

Adobe Inc. (ADBE) to Pullback to a Key Support Around $280

ADBE Daily Chart

(click to enlarge)

Support Reaction:
- As we can see on the daily chart, price did initially find support at $280 and consolidated. 
- However, price fell lower towards $270-$275 last week - we anticipated this scenario: "However, sometimes the market swings wider than that, and I think there is a chance ADBE will swing towards the $275-$280 area.
- Price stretched to $270 during the 9/18 session, tagging the 200-day simple moving average (SMA). We saw a strong reaction here with relatively strong volume. The volume was stronger than when price found support at $280.
- Also note the bullish divergence between price and the RSI.
- I think there is a good chance that price will have a significant rally here. Even, within the context of more consolidation, there could be upside towards $300.
- With such a strong reaction at $270 now, a break below this level would be a critical bearish signal. Otherwise, I am anticipating upside towards the $295-$300 area. 

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