Although 2023 has been positive for Adobe (NASDAQ: ADBE) stock, the company hasn’t been able to repeat this success so far in 2024, and more losses could be in store as it forms the first death cross chart pattern in more than two years.
As it happens, Adobe’s death cross, which refers to a short-term moving average (MA) crossing below a long-term MA – in this case, the 50 MA crossing below the 200 MA – last time happened in February 2022, as markets analyst Barchart observed in an X post on April 11.
ADBE stock price prediction
Furthermore, the expert pointed out that after the 2022 death cross, Adobe stocks tumbled by over 44% in the following eight months, suggesting similar could happen this time around too. This also means that Adobe shares would drop to a mere $292 eight months from now.
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On the other hand, it is also worth noting that Wall Street analysts are still bullish on ADBE stock price, having assigned a ‘buy’ rating to it and expecting an average price of $620 for the next 12 months, albeit this is a lower target from their previous prediction of $755 that Finbold reported on March 2.
Adobe stock price analysis
For now, Adobe stock is trading at the price of $486.57, which suggests a decline of 0.15% on the day, a gain of 0.73% across the previous week, and a 15.98% loss over the past month, according to the most recent charts retrieved by Finbold on April 11.
All things considered, ADBE stock price might be looking at a challenging period, particularly as competitors like OpenAI invade its turf with their video creation tools. However, Adobe itself is making a valiant effort to stay relevant, paying creators to build its own artificial intelligence (AI) video model.
Whether it succeeds in this endeavor and consequently provides a necessary trigger for the Adobe stock price to rise, only time will tell, which is why doing one’s own research is critical when it comes to investing, be it in stocks, cryptocurrencies, real estate, or anything else.
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