When Cadence Design Systems (CDNS) Moves Investors should Listen

December 15, 2021, 14:45 pm ET, BY Allen K.- Contributor| Editor: Thomas H. Kee Jr. (Follow on LinkedIn)

How do we know what is going on #behindthescenes of a company?  According to Stock Traders Daily, a 20-year #financialindustry innovator, the best way to do this to to watch the price action in the stock. The  Cadence Design Systems (NASDAQ: CDNS) report below is a real world example. Included are trading plans for CDNS, but this report is static. If you want an update, or a different stock, please get one here Unlimited Real Time Reports. 

Longer Term Trading Plans for CDNS

• Buy CDNS slightly over 167.65 target 182.01 stop loss @ 167.17 Details

The technical summary data tells us to buy CDNS near 167.65 with an upside target of 182.01. This data also tells us to set a stop loss @ 167.17 to protect against excessive loss in case the stock begins to move against the trade. 167.65 is the first level of support below 177.87 , and by rule, any test of support is a buy signal. In this case, support 167.65 is being tested, a buy signal would exist.

• Short CDNS under 182.01, target 167.65, stop loss @ 182.54 Details

The technical summary data is suggesting a short of CDNS as it gets near 182.01 with a downside target of 167.65. We should have a stop loss in place at 182.54though. 182.01 is the first level of resistance above 177.87, and by rule, any test of resistance is a short signal. In this case, if resistance 182.01 is being tested, a short signal would exist.

Swing Trading Plans for CDNS

• Buy CDNS slightly over 182.01, target 184.00, Stop Loss @ 181.48 Details

If 182.01 begins to break higher, the technical summary data tells us to buy CDNS just slightly over 182.01, with an upside target of 184.00. The data also tells us to set a stop loss @ 181.48 in case the stock turns against the trade. 182.01 is the first level of resistance above 177.87, and by rule, any break above resistance is a buy signal. In this case, 182.01, 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 182.01, target 175.73, Stop Loss @ 182.54. Details

The technical summary data is suggesting a short of CDNS if it tests 182.01 with a downside target of 175.73. We should have a stop loss in place at 182.54 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, 182.01, 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 180.12, target 182.01, Stop Loss @ 179.7 Details

If 180.12 begins to break higher, the technical summary data tells us to buy CDNS just slightly over 180.12, with an upside target of 182.01. The data also tells us to set a stop loss @ 179.7 in case the stock turns against the trade. 180.12 is the first level of resistance above 177.87, and by rule, any break above resistance is a buy signal. In this case, 180.12, 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 180.12, target 175.73, Stop Loss @ 180.54. Details

The technical summary data is suggesting a short of CDNS if it tests 180.12 with a downside target of 175.73. We should have a stop loss in place at 180.54 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, 180.12, 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 December 15:

Term →	Near	Mid	Long
Rating	Neutral	Neutral	Strong
P1	0	0	154.10
P2	173.33	175.73	167.65
P3	180.12	184.00	182.01

Support and Resistance Plot Chart for CDNS

Real Time Updates for Repeat Institutional Readers:

Factset: Request User/Pass

Bloomberg, Reuters, Refinitiv, Zacks, or IB users: Access Here.