- Adyen reclaimed the 20-month SMA, suggesting a potential bullish shift in momentum.
- Resistance at €1,600 aligns with Fibonacci and Ichimoku levels, signaling a critical breakout zone.
- Failure to hold €1,500 could lead to a pullback to €1,400, with support levels being closely monitored.
The Adyen (ADYEN) monthly chart analyzed by Cantonese Cat highlights a bullish inverted head-and-shoulders formation. The stock has reclaimed its 20-month simple moving average (SMA), transitioning it from resistance to support—a technical development. Currently trading at €1,553, Adyen is testing the Ichimoku cloud resistance and the 0.618 Fibonacci level, which are key hurdles for further upward momentum. A breakout above these levels could confirm a long-term bullish reversal, while failure to sustain support could lead to a pullback.
SMA Reclaim and Its Implications
Adyen’s 20-month SMA, currently positioned at €1,500, has served as a marker for trend reversals. Its reclaim indicates a potential shift in momentum from bearish to bullish. Historically, such a reclaim has often led to sustained rallies. However, if Adyen fails to hold above this level, it could revisit the **0.5 Fib near €1,400, acting as the next major support zone.
At present, the 0.618 Fibonacci retracement, a level often associated with strong resistance, aligns closely with Adyen’s Ichimoku cloud resistance. This confluence of resistance near €1,600 makes it a critical level to watch. A successful breakout above this range could trigger a rally toward €1,800, aligning with the next resistance band on the chart.
Potential Scenarios Ahead
If Adyen breaks through the €1,600 resistance, it could test the €1,800–€2,000 range over the coming months. On the downside, if selling pressure emerges, the stock may retest the 20-month SMA at €1,500, with the €1,400 level serving as a secondary support. Volume trends suggest rising participation, which further supports the likelihood of a decisive move soon.
The analysis provides a clear roadmap of technical levels and scenarios to monitor. With a bullish inverted head-and-shoulders pattern in play and key technical indicators aligning, Adyen is at a pivotal moment.
