- Adobe Stock Price (NASDAQ: ADBE) rallied more than 25% in 2 weeks.
- ADBE Stock Price racing toward the 52 week high.
- Adobe Inc to add an AI powered image generator in Photoshop.
Adobe Stock Price (NASDAQ: ADBE) rallied 25% from the recent low near $340.00 in just 2 weeks. It broke out of the $386.00 hurdle level with a strong buying volume which triggered positive sentiment and fueled the rally.
Adobe Inc said, It is adding AI-Powered image generators into Photoshop. The tool named Firefly will allow users to add or delete elements from the images with a text prompt. It can also match the lighting and style of existing images automatically. The feature is currently available in the Photoshop Beta App.
This new feature will increase the customer base and also add more value to existing users. The ADBE stock reacted positively to this move and prices ran toward the 52 week high. It displayed a golden crossover which showed the strength of the trend.
Adobe Stock price sustains above the 50 and 200 day EMA but the recent rally has taken the prices far away from EMAs. Therefore, either the prices will consolidate or retrace downward to test the EMA.
Adobe Stock price closed the previous session at $436.37 with an intraday rise of 2.25%. The market capitalization stands at $200.16 Billion.
Will Adobe Stock rally further after earnings?
Adobe Stock Price (NASDAQ: ADBE) performed well in the past few months and formed a double bottom pattern. The trading volume is on rise and prices followed the same direction shows genuine investors are building positions ahead of earnings.
Adobe Inc scheduled the next quarter earnings on June 15, 2023. The market analyst estimated the EPS of $3.786 and revenue estimates are $4.771 Billion. Adobe is expected to meet the estimates which will fuel the further rally in the stock.
The chart pattern of the stock looks strong and likely to hit the fresh 52 high in the current month.
The technical analysis suggests, ADBE Stock price is adjusting the future growth prospect due to new features coming in Photoshop. Therefore, more upward momentum toward $475.00 is possible.
Rally in ADBE Stock looks sustainable
ADBE Stock Price up by 5% in the previous week and formed a bullish hammer candle. The sharp rally in the stock shows the strength of the bulls and looks sustainable. However, any short term correction toward $380.00 will be easily absorbed by the buyers.
The MACD has generated a positive crossover and histogram bar is continuously rising. It indicates the bullish momentum is likely to continue for some more time. The RSI at 78 sloping upward denotes strength but prices are entering into the overbought territory.
Conclusion
Adobe Stock Price (NASDAQ: ADBE) rallied 25% from the recent low ahead of quarterly earnings. The new updates coming in Photoshop had fueled the rally in ADBE Stock.
The technical analysis says, Adobe Stock has turned bullish and expected to hit the fresh 52 week high in the current month.
Technical levels
Resistance levels: $451.00 and $472.00
Support levels: $386.00 and $360.00
Disclaimer
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