ADBE and the power of Fibs with AVWAP!
ADBE recently retraced to support at the 0.786 fib from the move to the February high and then gapped up today on a positive earnings. This likely to begin a 5th wave up that could take months to play out, similar to what we saw in 2021.We can see several instances of it respecting key levels from 2021 fib retrace in the first two waves up in the recovery from the 2022 low.
I plan to participate in this move but will place an AVWAP on earnings and buy the first retest of it.
Why wait for that AVWAP? Notice that the purple AVWAP on the 06/08/23 candle, which was the last time that it touched the 430 0.786 level prior to gaping up into wave 3. This AVWAP acted as support multiple times in 2023 before going on to the February 2024 high. When ADBE broke down in February it retested this AVWAP before failing and retracing all the way back to the 430 0.786.
This mornings opening gap ran to that AVWAP and hit resistance. We're likely to see price test the green AVWAP from the February high before challenging and crossing the purple and proceeding.
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