The exact opposite pattern -- a descending triangle -- is forming in shares of Adobe Systems (ADBE). Adobe had been rallying hard for most of 2012, pushing the stock 14.5% higher since the first trading day of the new year, but the technical pattern in shares right now points to a reversal in that bull run.
Adobe currently has horizontal support at $32 and downtrending resistance has been in place since late March. The fact that Adobe has been able to catch a bid at $32 means that there are big implications if the stock can't bounce on another test of that level. That's why a break below that $32 support level makes Adobe a short candidate.
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