Cadence Design Systems ( NASDAQ:CDNS ), a San Jose-based electronic design automation software manufacturer, has released its first-quarter financial results. The company reported adjusted earnings of $1.17 per share on sales of $1.01 billion, beating FactSet's estimated earnings of $1.13 per share on sales of $1 billion. However, compared to the same period last...
CDNS located in California is a software firm supporting computer assisted design ( ACAD) for
the semi-conductor industry. While its customer base gets the headlines, this company helps
make it happen. The 120 minute chart looks good as price is uptrending with good volume
and relative strength. Earnings have been solid and another is around the corner. Price...
Cadence Design Systems, Inc., headquartered in San Jose, California, is an American multinational computational software company, founded in 1988 by the merger of SDA Systems and ECAD, Inc.
Potential swing long.
A price action below 271.00 supports a bearish trend direction.
Crossing below 267.00 will trigger further support for the short-sell position.
The target price is set at 256.00 (its 38.2% Fibonacci retracement level).
The stop-loss is set at 282.00 (just above the full retracement).
A "healthy correction" in the stock market typically refers to a short-term...
CDNS is currently in an ascending wedge with bearish RSI divergence. Look for a break of trend on smaller timeframe for entry, SL above last swing high, moving SL to BE when safe to do so.
Looking for a break below 221.93, potential stop signal above 230.23, potential target 1: 201.53 (200sma) target 2: 152.23 // Insider selling during June July and August. (Disclosure : I own Sep $230 Puts in CDNS currently)
Entry: with price above 239.90
Volume: with volume greater than 3.32M
Target: 257.5 area
Stop: Depends on your risk tolerance; Based on an entry of 239.91, a stop of 232.84 gets you 3/1 Reward to Risk Ratio.
This swing trade idea is not trade advice and is strictly based on my ideas and technical analysis. No due diligence or fundamental analysis was performed...
They make software that helps semis companies design their chips. Is up 382% in the past 5 years, outperforming the market. Up 27% YTD even after pulling back the past month.
Intitial W is the same yet a little bit smaller
It provided a lane for price to extend a lot during the right arm of the W
The second one is currently experiencing the right arm of the W and looks to extend like the first
Bullish fractal
$CDNS broke through supply with volume before retesting on decreasing volume. The large red candle after earnings is slightly concerning. Watching for a continuation with strength.
The PEAD projected a Neutral outlook for $CDNS after a Negative Under reaction following its earnings release placing the stock in drift D with an expected accuracy of 33.33%.
The PEAD projected a Bullish outlook for $CDNS after a Positive Under reaction following its earnings release placing the stock in drift A with an expected accuracy of 60%.
4Hr Chart for CDNS
The red hammer suggests the two points are comparable, and we are headed for a downward move
The second scenario is that the middle green line hodls and price continues up through the higher triangle area
Orange line emphasizes the bear scenario trend line
The 200-day simple moving average acted as some major resistance.
A price action below 159.50 supports a bearish trend direction.
Further bearish trend support below 158.00.
Consolidation price range from 151.50 to 157.00
Crossing below 151.50 might target 146.00.
Crossing above 157.00 will be the first sign of pending strength.
$CDNS showing classic signs of being under accumulation, with a six month base, multiple pocket pivots and an up/down ratio of 1.43 - it has an acc/dis rating of A- on IBD and features in the top 50, with a composite rating of 96. Definitely worth keeping on watch for a break over $168.83
There is also an ABC bullish pattern inside the rectangle. The target for this pattern is D. As a rule, price will reverse when it hits D if the pattern makes it to D.
There is resistance from the upper trendline of the rectangle. In order for price to see full realization of the ABC bullish pattern, the upper trendline of the rectangle will need to be...
Bearish
Fundamental
- High PE
- Negative PEG ratio
- Weak industry group
TA
- Bearish momentum divergence
- Momentum diving
- Broke down trend line
- Rejected retest
- Rejected fibo
- Strong supper / resistance at POC level
