ADBE (Adobe) has seen a very nice rebound from the 200 area that we discussed in our report on June 18 HERE. The stock made a perfect five-wave decline from the May highs that now could be coming to an end as price recovers beyond the channel resistance line. So it looks like a bottom could be forming here, and more upside could be seen in the weeks ahead. In fact, this could be the early stage of a new bullish reversal, so after a pullback, ideally in wave two, we will expect a new leg higher in wave three. Support is anywhere between 210–238. In fact, Adobe turned perfectly higher from that 204 support that we previously marked on our weekly chart.
Highlights:
• Adobe may have completed a five-wave decline from the May highs.
• The break above the bearish channel supports a potential bottom.
• A wave two pullback could now develop before the next move higher.
• The 210–238 area is important support on a pullback.
• As long as 190.27 holds, there is room for a potential wave three rally.
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