Shares of Adobe Inc. (NASDAQ:ADBE) have been ripping higher. Since the beginning of the month, they have gained more than 10%.
But the rally may be about to end.
The shares are extremely overbought. This means they are trading at an extreme level above what would be their typical trading range. This will bring sellers into the market and they could knock it down.
Over the past 10 months, the shares have only been as overbought as they are now on two occasions. Once was in August and the other time was in April. Both times were signals to sell. Now may be a good time to do so as well.
