- Summary:
- Adobe Stock Price Forecast - NASDAQ: ADBE is showing weakness ahead of its earnings. Bulls may target $589-$604 price gap soon.
Adobe (NASDAQ: ADBE) stock price is retesting the key demand zone of $535-$550 for support. The stock of the American software company is up almost 12% from its August lows and has made a new yearly high of $565. On Wednesday, the stock closed at $553 after gaining 2.09%.
The Wall Street indices surprised investors after showing recovery on Wednesday. The US CPI data was announced on Wednesday, which was slightly above than expected. Nevertheless, the NASDAQ 100 index rose by 40 points, and the S&P500 also showed a 0.12% gain.
Adobe Joins The AI Bandwagon
On Wednesday, Adobe announced the release of Firefly, which will be used to generate AI models and integrated into Adobe’s Creative Cloud, Experience Cloud, and Adobe Express. The software company stated that Firefly can be used commercially and can understand up to 100 languages.
In other news, Adobe’s third-quarter earnings will be announced on 14th September. Analysts expect Adobe to report $3.97 earnings per share for the previous quarter, up from the 3.4 reported last year. An 11.2% increase in revenue is also expected, to $4.87 billion. Additionally, eight analysts have expressed confidence in Adobe’s performance and recommended the stock as a buy. Adobe stock price currently sits 72.5% above its yearly low.
Adobe Stock Price Breaks Above Key Resistance Level
The daily chart of NASDAQ: ADBE shows the price retesting the $535-$550 level for support after breaking above it on 31st August. The chart also shows the price’s attempt to break above the same level on 1st August but to no avail.
The Adobe stock price forecast will flip extremely bullish if the price gains strength above $550. In this case, I expect the price to fill the $589-$604 price gap which was left in December 2021. This may be followed by a strong rally above $700 in the coming weeks. On the other hand, a breakdown below $535 will put another retest of $504 support level on the cards.
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