Trend Tracker for Cadence Design Systems CDNS

July 20, 2021, 12:15 pm ET, BY Jesse F.- Contributor| Editor: Thomas H. Kee Jr. (Follow on LinkedIn)

The data for Cadence Design Systems (NASDAQ: CDNS) herein utilizes proprietary algorithms produced by Stock Traders Daily and refined since the turn of the century.

Warning:

This is a static report, the data below was valid at the time of the publication, but support and resistance levels for CDNS change over time, so the report should be updated regularly.  Real Time updates are provided to subscribers.  Unlimited Real Time Reports.

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Instructions:

The rules that govern the data in this report are the rules of Technical Analysis.  For example, if CDNS is testing support buy signals surface, and resistance is the target.  Conversely, if resistance is being tested, that is a sign to control risk or short, and support would be the downside target accordingly.  In each case, the trigger point is designed to be both an ideal place to enter a position (avoid trading in the middle of a trading channel), and it acts as a level of risk control too.

Swing Trades, Day Trades, and Longer term Trading Plans:

This data is refined to differentiate trading plans for Day Trading, Swing Trading, and Long Term Investing plans for CDNS too.  All of these are offered below the Summary Table.

Longer Term Trading Plans for CDNS

• Buy CDNS slightly over 129.97 target 141.29 stop loss @ 129.59 Details

The technical summary data tells us to buy CDNS near 129.97 with an upside target of 141.29. This data also tells us to set a stop loss @ 129.59 to protect against excessive loss in case the stock begins to move against the trade. 129.97 is the first level of support below 137.99 , and by rule, any test of support is a buy signal. In this case, support 129.97 would be being tested, so a buy signal would exist.

• Short CDNS under 141.29, target 129.97, stop loss @ 141.7 Details

The technical summary data is suggesting a short of CDNS as it gets near 141.29 with a downside target of 129.97. We should have a stop loss in place at 141.7though. 141.29 is the first level of resistance above 137.99, and by rule, any test of resistance is a short signal. In this case, if resistance 141.29 is being tested, so a short signal would exist.

Swing Trading Plans for CDNS

• Buy CDNS slightly over 138.99, target 141.29, Stop Loss @ 138.59 Details

If 138.99 begins to break higher, the technical summary data tells us to buy CDNS just slightly over 138.99, with an upside target of 141.29. The data also tells us to set a stop loss @ 138.59 in case the stock turns against the trade. 138.99 is the first level of resistance above 137.99, and by rule, any break above resistance is a buy signal. In this case, 138.99, initial resistance, would be breaking higher, so a buy signal would exist. Because this plan is based on a break of resistance, it is referred to as a Long Resistance Plan.

• Short CDNS near 138.99, target 136.88, Stop Loss @ 139.39. Details

The technical summary data is suggesting a short of CDNS if it tests 138.99 with a downside target of 136.88. We should have a stop loss in place at 139.39 though in case the stock begins to move against the trade. By rule, any test of resistance is a short signal. In this case, if resistance, 138.99, is being tested a short signal would exist. Because this plan is a short plan based on a test of resistance it is referred to as a Short Resistance Plan.

Day Trading Plans for CDNS

• Buy CDNS slightly over 138.03, target 138.99, Stop Loss @ 137.71 Details

If 138.03 begins to break higher, the technical summary data tells us to buy CDNS just slightly over 138.03, with an upside target of 138.99. The data also tells us to set a stop loss @ 137.71 in case the stock turns against the trade. 138.03 is the first level of resistance above 137.99, and by rule, any break above resistance is a buy signal. In this case, 138.03, initial resistance, would be breaking higher, so a buy signal would exist. Because this plan is based on a break of resistance, it is referred to as a Long Resistance Plan.

• Short CDNS near 138.03, target 136.88, Stop Loss @ 138.35. Details

The technical summary data is suggesting a short of CDNS if it tests 138.03 with a downside target of 136.88. We should have a stop loss in place at 138.35 though in case the stock begins to move against the trade. By rule, any test of resistance is a short signal. In this case, if resistance, 138.03, is being tested a short signal would exist. Because this plan is a short plan based on a test of resistance it is referred to as a Short Resistance Plan.

CDNS Ratings for July 20:

Term →	Near	Mid	Long
Rating	Neutral	Neutral	Strong
P1	0	0	129.97
P2	136.65	136.88	141.29
P3	138.03	138.99	153.52

Support and Resistance Plot Chart for CDNS

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