CDNS runs into sellers again around 79.68
Cadence Design Systems Inc. (CDNS) Technical Analysis Report for Feb 14, 2020 | by Techniquant Editorial Team
CDNS finished the week 7.08% higher at 78.76 after losing $0.49 (-0.62%) today, underperforming the Nasdaq 100 (0.29%) ahead of tomorrow's Presidents' Day market holiday. Closing within the previous day's range, prices failed to decisively move beyond the prior day's trading range.
Daily Candlestick Chart (CDNS as at Feb 14, 2020):
Friday's trading range has been $1.32 (1.66%), that's slightly below the last trading month's daily average range of $1.50. Things look different on the weekly timeframe, where the market's trading range of the last week has been way above the market's average weekly trading range. The longer-term, monthly volatility is currently higher than usual for CDNS.
One bearish candlestick pattern matches today's price action, the Black Candle. The last time a Black Candle showed up on February 7th, CDNS actually gained 1.47% on the following trading day.
After having been unable to move above 79.59 in the previous session, the stock ran into sellers again around the same price level today, missing to move higher than 79.68.
With another close above the upper Bollinger Band, prices are confirming their strong upward momentum in the short-term. A drop back into the Bollinger Band on the next trading day though could signal a potential change in momentum that might lead to a correction back down towards the center of the Bollinger Bands at 74.67.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Among the four market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "High close to prior High" stand out. Although it is usually interpreted as bearish, it has actually shown to be bullish for Cadence Design. Out of 606 times, CDNS closed higher 57.26% 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 60.23% with an average market move of 1.14%.