Today we've chosen to take a look at Adobe Systems Inc
) because an interesting broadening formation
has appeared on the chart. The formation shown below is considered to be a reversal
pattern and it is commonly used by traders to predict the shift in a prolonged trend. The two trendlines diverge from the apex and the pattern resembles a reversed version of a symmetrical triangle
. Today's move below the bottom trendline suggests that the bears are taking control of the momentum and we could see the price move toward the top of the gap
($36.50). A move below the dotted line will cause traders to set their targets at $34.