SNPS rises to highest close ever
Synopsys Inc. (SNPS) Technical Analysis Report for Mar 15, 2019 | by Techniquant Editorial Team
Moving higher for the 5th day in a row, SNPS ended the week 5.78% higher at 109.17 after gaining $1.17 (1.08%) today, slightly outperforming the Nasdaq 100 (0.88%). Today's close at 109.17 marks the highest recorded closing price ever. Closing above Thursday's high at 108.23, Synopsys confirmed its breakout through the prior session high after trading up to $1.92 above it intraday.
Daily Candlestick Chart (SNPS as at Mar 15, 2019):
Friday's trading range has been $2.15 (1.99%), that's slightly above the last trading month's daily average range of $1.69. Weekly volatility is also higher, being way above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for SNPS.
One bullish candlestick pattern matches today's price action, the White Candle.
Buyers managed to take out the key technical resistance level at 108.33 (now S1), which is likely to act as support going forward. The last time this happened on Monday, SNPS gained 1.41% on the following trading day.
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 103.84.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Among the six market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Price broke through Technical Resistance R1" stand out. Its common bullish interpretation has been confirmed for Synopsys. Out of 276 times, SNPS closed higher 52.54% 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 63.04% with an average market move of 0.88%.