CDNS Stock Price Holds 100 Day EMA, Will Rally Extend to $250?

Cadence Design Systems Inc. (NYSE: CDNS) stock price is trading in the bull trajectory and held at the 100 day EM. Furthermore, the rejection candlestick highlights the bulls’ strength. The chart shows the rising parallel channel and the higher high sequences. CDNS stock price took a calm breath near the 100 day EMA and made a doji candlestick near $230.

CDNS stock price is trading in an uptrend with the chart showing long buildup. Sellers failed to break the swing of $230 and are covering their positions. Per the options chain, at the strike price of $230, open interest of 729 hundred shares on the put side, whereas open interest of 486 hundred shares on the call side (Nasdaq). This option chain suggests that bulls will continue and CDNS stock will surpass $250 soon.

At press time, CDNS stock price is trading at $233.72 with an intraday gain of 1.23% showing neutrality on the charts. Moreover, the trading volume increased by 0.12% to 1.097 Million and the market cap is $63.586 Billion. However, analysts have maintained a strong buy rating with a yearly target price of $276.52 suggesting a growth outlook.

Cadence Design Systems, Inc. engages in the design and development of integrated circuits and electronic devices. Its products include electronic design automation, software, emulation hardware, and intellectual property, commonly referred to as verification IP, and design IP. It operates through the following geographical segments: United States, Other Americas, China, Other Asia, Europe, Middle East and Africa and Japan.

Will CDNS Stock Surpass the Hurdle of $250?

On the daily charts, CDNS stock price is trading close to the 100 day EMA and has persisted in extending the gains inside the rising parallel channel. Furthermore, the CDNS stock price is trading above the 50% Fibonacci retracement zone and is close to the 61.8% Fib level near $240. Moreover, the CDNS stock price is trading in the bullish trajectory and is close to the upper bollinger band.

The RSI curve stayed in the oversold region and shows a bullish divergence. The MACD is bearish and suggests that profit booking was witnessed in the last few sessions.

Summary

CDNS stock price is trading in the bullish trajectory and has persisted in forming the higher highs for the past sessions. The price action shows long build ups and the rising parallel channel which suggests that the rally will continue and that CDNS stock will reach the highs near $270 soon.

Technical Levels

Support Levels: $230 and $220

Resistance Levels: $240 and $250

Disclaimer

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