McGuireTO
Short

Bears eyeing ADBE divergence

NASDAQ:ADBE   ADOBE INC
ADBE has been a beast for a long time, but there are signs the bulls may be exhausting. The daily chart is looking toppy with upper wicks of profit taking and clear resistance at 272.50, and a potential bearish reversal Head & Shoulders pattern forming on the daily. The support to break is 257 to confirm the pattern.

The daily chart is setting up minor RSI bearish divergence and pretty significant MACD bearish divergence.

This is one I'm going to wait for to come to me. Bearish RSI and MACD divergence on the weekly can be seen going back to November 2017 and the odds are always against the bear standing in front of a bull stock at all time highs. Any bears who took this short at the first sign of the divergence have long become insolvent.
Well played sir.
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The third leg of the HS pattern tested the $277 highs, but couldn't find support from the bulls. Is it typical for HS patterns to break the 50 day EMA? Hey McGuireTO, did you use Fib Ext see the support of $257? What tools do you recommend for chart reading and what's your thought on future movement? It wasn't able to hold above the 50 day EMA of $258, but the day is still young.
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