Adobe is selling off aggressively after breaking out of a triangle formation, and price is now in a fifth wave decline, approaching the 240 triangle measurement target; the first area to watch for potential stabilization. However, there is no confirmed low in place until we see an impulsive rebound, possibly back above 311. But a meaningful recovery could still develop later this year, but given the strong bearish momentum, we cannot rule out a retest of the 205 level; its the 2019 low. So this whole 205–230 zone will be very important for this year.
On the higher degree chart, wave C appears to be in its late stages, which increases the probability that this corrective cycle could come to an end within that support region.
Highlights:
- Wave five decline in progress after triangle breakdown.
- 240 is first stabilization area based on triangle target.
- 205–230 is key higher degree support zone.
- Need an impulsive rebound to confirm a durable low.
Get Full Access To Our Premium Elliott Wave Analysis For 14 Days. Click here.
Source: https://www.fxstreet.com/news/adobe-selloff-deepens-as-wave-five-decline-unfolds-202603040840
