ADBE, Second BEAR-Fractal, SHORT-Momentum DOOMSDAY Incoming!

Hello There!

Welcome to my new analysis of ADBE. This stock has been massively battered by the major bear market decline setup in the gigantic bear channel. This stock did not exceed any new highs and did not have the potential to emerge with new bull momentum. The bears are still present within this stock and this is exactly why the bear momentum for this stock can accelerate heavily any time soon. There are several major bearish indications that are underlining the bearish scenario for the stock in an overwhelmingly precarious way.

Three reasons why the bear doomsday scenario for the stock is present, starting any time soon:
1.) Massive Liquidations: Over 250 Billion positions have been liquidated within the previous bearish doomsday market decline wave towards the downside.
2.) Weak Momentum: The momentum with which the recent meager recovery wave setup is highly fragile and is likely to turn anytime soon.
3.) Major Short-Side Positioning: A vast amount of institutional and smart money operators are positioning their selves on the short side. Always an important indication especially with retail traders positioned in the other direction.

Why shorting the stock through the upcoming second bear doomsday scenario will be the best approach in the current and upcoming market conditions:
1.) Second bearish ascending wedge fractal: The stock is going to complete exactly the same bearish ascending wedge fractal towards the downside once again.
2.) Total-Return Approach: By shorting the stock a trader has the candidature to a total-return approach, the trader is profiting when prices fall and at other times when they go up.
3.) Liquidation Acceleration: Once the whole ascending fractal has been completed it will trigger a fast-paced bearish wave making profits much faster than in an uptrend.

The most prevalent determining indications that are going to activate the upcoming bear market scenario wave for the stock:
As it is seen in my chart ADBE completed the huge bearish ascending triangle fractal exactly by moving into the upper distribution zone from where it emerged with the pullback towards the downside and set up the massive 250 Billion bearish liquidation wave towards the downside. This wave developed very fast and by positioning oneself before this huge bearish wave and completion of the fractal towards the downside a trader could make a big load of profit in the market.

Now, ADBE is still trading within the gigantic descending channel formation in which it has the most prevalent upper resistance distribution channel which has been the origin of the massive bearish waves towards the downside before and is now already setting up the upcoming 300 Billion bearish liquidation wave towards the downside which is going to activate the completion of the second ascending wedge fractal and the preceding wave C towards the bearish direction.

In the next times, the whole bearish ascending wedge fractal will be completed with the breakout below the lower boundary followed by the breakout below the 65EMA and 100EMA from where the bearish trend acceleration is going to unfold huge accelerations towards the downside and the severe bearish continuations towards the lower target zones. Especially, in this case, the market could still continue beyond this level in the bearish direction.

Upcoming Perspectives and the major underlying factors that are primarily important for consideration on the short side for the stock, the sector, and the economic field:
It has to be mentioned that an economic field with high interest rates, spreading inflation, a stagnation within the sector is setting up the determination to increase this whole bearish wave development, especially with a more bearish volume moving into the market. Also, highly determining in this case is the actual technology developments because when they reverse in an economic field this will have massive bearish effects on the stock as well.

Now, for traders it is highly important to follow such market situations with the appropriate setup within the market, especially in such times it is necessary to have the right positioning within the market because a massive bearish pressure acceleration can start anytime soon considering a huge acceleration in the inflation, a smart money operator bearish market making in which the bearish conclusion will be inevitable, an expiring futures market in which a lot of futures turn to an bearish volatility in the market. This is why traders need to position their selves before all these heavy bearish scenarios are set up.

In this manner, thank you everybody for watching my analysis of ADBE. Support from your side is greatly appreciated.

VP

Comment:

UPDATE: In a bearish setting there are two possible ways of entering on the short side.

The first approach is to enter directly when the bearish formation is forming. The risk/reward should be decreased by 0.4 with this approach.

The second approach is to enter once the most important validations emerge. The risk/reward can be increased by 0.4 with this approach.

Comment:

UPDATE: ADBE continued with a bearish sentiment acceleration, more bears increased their crucial positions here.

ADBE already completed the bearish wedge breakout setting up the next bear flags.