Current trend

Shares of Adobe Inc., a leading American software developer, are trading in a correction trend at 521.00.

The company is actively expanding the functionality of artificial intelligence (AI). Yesterday, it announced updates for Adobe Experience Cloud services, including AI Assistant and Adobe Content Analytics. The programs are optimized for various target audiences and help users solve marketing problems with the help of AI. In particular, it can create brand assets that automatically adapt to the selected target group of clients.

Nevertheless, the company’s financial forecast for the fourth quarter has raised concerns about the decline in net annual revenue from digital media, which may be 20.0M dollars below previous estimates. As a result, Piper Sandler Co. experts changed the corporation rating from overweight to underweight, with the target price of 635.0 dollars per share. In addition, revenue may follow at 5.6B dollars, and earnings per share – 4.67 dollars.

The report for the third quarter was published on September 12: revenue amounted to 5.41B dollars, exceeding the expectations of 5.37B dollars, and earnings per share – 4.65 dollars compared to 4.53 dollars.

Support and resistance

On the daily chart, the trading instrument is moving in a corrective trend, trying to consolidate below the support line of the channel 640.00–540.00.

Technical indicators strengthen the downward signal: fast EMAs on the Alligator indicator are below the signal line, and the AO histogram forms correction bars in the negative zone.

Resistance levels: 535.00, 580.00.

Support levels: 508.00, 467.00.

Trading tips

Short positions may be opened after the price declines and consolidates below 508.00, with the target at 467.00 and stop loss 520.00. Implementation period: 7 days or more.

Long positions may be opened after the price grows and consolidates above 535.00, with the target at 580.00. Stop loss — 520.00.