In-Depth Technical Analysis of CADENCE DESIGN SYS INC.

CADENCE DESIGN SYS INC (NASDAQ:CDNS) has been identified as a Technical Breakout Setup Pattern by our stock screener. This pattern typically occurs when a stock takes a pause after a significant rise, indicating the possibility of a continuation in the trend. While it's impossible to predict with certainty, it might be beneficial to monitor NASDAQ:CDNS.

Zooming in on the technicals.

ChartMill assigns a proprietary Technical Rating to each stock. The score is computed daily by evaluating various technical indicators and properties. The score ranges from 0 to 10.

Taking everything into account, CDNS scores 7 out of 10 in our technical rating. Although CDNS is only a medium performer in the overall market, the technical picture looks good in both the medium and short term time frames.

• The short term is neutral, but the long term trend is still positive. Not much to worry about for now.
• CDNS is currently trading in the upper part of its 52 week range. The S&P500 Index however is currently trading near a new high, so CDNS is lagging the market slightly.
• When comparing the yearly performance of all stocks, we notice that CDNS is one of the better performing stocks in the market, outperforming 72% of all stocks. However, this relatively good performance is mostly due to a recent big move.
• CDNS is part of the Software industry. There are 278 other stocks in this industry, CDNS did better than 51% of them.
• In the last month CDNS has a been trading in the 296.06 - 326.19 range, which is quite wide. It is currently trading in the middle of this range, so some resistance may be found above.

Our latest full technical report of CDNS contains the most current technical analsysis.

Looking at the Setup

Besides the Technical Rating, ChartMill also assign a Setup Rating to every stock. This setup score also ranges from 0 to 10 and determines to which extend the stock is consolidating. This is achieved by evaluating multiple short term technical indicators. NASDAQ:CDNS currently has a 8 as setup rating:

Besides having an excellent technical rating, CDNS also presents a decent setup pattern. Prices have been consolidating lately. A pullback is taking place, which may present a nice opportunity for an entry. There is a support zone below the current price at 301.23, a Stop Loss order could be placed below this zone.

How to trade NASDAQ:CDNS?

A breakout could materialize when the stock breaks out to new highs above the current consolidation zone. One could wait for this to happen and buy when this happens. A stop loss could be placed below the consolidation zone.

Disclaimer: This article is not intended to provide trading advice. It is crucial to conduct your own analysis and consider your own observations and trading style when making investment decisions. The article solely presents technical observations and should not be relied upon as a sole basis for trading.

More breakout setups can be found in our Breakout screener.

Disclaimer

This is not investing advice! The article highlights some of the observations at the time of writing, but you should always make your own analysis and invest based on your own insights.