ADBE - 2 way this could play out

7 Jan 2021

We have 2 possiblities here.

Either we are in a complex WXY correction which would then take price towards 415 in a corrective fashion similar to the dotted line drawing.

or

we are finishing a Flat corrective wave 2 pattern in which case price should remain above the invalidation level at 439.

The usual termination point for wave (C) of a Flat pattern is the 100% and 127.2% projection of wave (A) from (B) but the 127.2% level would be below the invalidation level, therefore we can discard it for this setup.
100% level comes at 451, which is also the 78.6% retracement level of wave 1, known also as the last line of defense for bulls.
So, price needs to ideally remain above that level if we are to see higher prices.


Note also that any move above 505 even before touching the 451 level should be considered as a big bullish indication!