CDNS breaks below Thursday's low
Cadence Design Systems Inc. (CDNS) Technical Analysis Report for Jun 14, 2019 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, CDNS finished the week 3.28% higher at 67.72 after losing $0.38 (-0.56%) today on low volume, slightly underperforming the Nasdaq 100 (-0.42%). Closing below Thursday's low at 67.89, the market confirmed its breakout through the previous session low after trading up to $0.81 below it intraday.
Daily Candlestick Chart (CDNS as at Jun 14, 2019):
Friday's trading range has been $0.92 (1.35%), that's below the last trading month's daily average range of $1.32. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for CDNS.
Prices are trading close to the key technical resistance level at 68.20 (R1).
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
With prices trading close to this year's high at 70.49, upside momentum might speed up should the share be able to break out to new highs for the year.
Among the two market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "2 Consecutive Lower Closes" stand out. Although it is usually interpreted as bearish, it has actually shown to be bullish for Cadence Design. Out of 301 times, CDNS closed higher 56.15% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the long side has been after 10 trading days, showing a win rate of 62.13% with an average market move of 1.37%.