• Subscribe
  • Log In
  • Home
  • Daily Diary
  • Asset Class
    • U.S. Equity
    • Fixed Income
    • Global Equity
    • Commodities
    • Currencies
  • Sector
    • Basic Materials
    • Consumer Discretionary
    • Consumer Staples
    • Energy
    • Financial Services
    • Healthcare
    • Industrials
    • Real Estate
    • Technology
    • Telecom Services
    • Transportation
    • Utilities
  • Latest
    • Articles
    • Video
    • Columnist Conversations
    • Best Ideas
    • Stock of the Day
  • Street Notes
  • Authors
    • Bruce Kamich
    • Doug Kass
    • Jim "Rev Shark" DePorre
    • Helene Meisler
    • Jonathan Heller
    • - See All -
  • Options
  • RMPIA
  • Switch Product
    • Action Alerts PLUS
    • Quant Ratings
    • Real Money
    • Real Money Pro
    • Retirement
    • Stocks Under $10
    • TheStreet
    • Top Stocks
    • TheStreet Smarts
  1. Home
  2. / Investing

A Large Broadening Pattern on Snyopsys Bears Watching - Limit Your Risk

Let's check out the charts of this advanced silicon chip maker.
By BRUCE KAMICH
Feb 13, 2019 | 10:18 AM EST
Stocks quotes in this article: SNPS

Snyopsys (SNPS) was favored by Jim Cramer during the 'Lightning Round' of the popular Mad Money program Tuesday night. Let's check out the charts of this advanced silicon chip maker.

In this daily bar chart of SNPS, below, we can see a steep selloff from September to the end of December followed by a steep recovery rally. Last month SNPS rallied above the rising 50-day and the bullish 200-day moving average lines.

The daily On-Balance-Volume (OBV) line shows an interesting pattern. The OBV line declines with prices from September to early October - more aggressive selling fits the price decline. The OBV line moves sideways to late December and does not confirm the price decline. Now the rise in the OBV line from late December is okay but seems a little weak compared to the price rise.

The Moving Average Convergence Divergence (MACD) oscillator crossed the zero line last month for an outright go long signal. The indicator is still bullish.

In this weekly bar chart of SNPS, below, we can see (or imagine) a large broadening pattern. Broadening patterns can be continuation patterns which would be bullish or they can be a reversal pattern or bearish. Prices trend sideways from late 2017 with higher highs and lower lows in an expanding pattern like the bell of a trumpet or other brass instrument. Prices are above the rising 40-week moving average line now but we can see several swings above and below it.

The weekly OBV line shows a positive trend the past three years but recently it has not made a new high for the move up even though prices are close to a new high. This isn't quite a bearish divergence but it bears watching.

The MACD oscillator is crossing the zero line now for a new buy signal.

In this Point and Figure chart of SNPS, below, we can see an upside price target of $117.77, but we would also like to see a trade at $103.41 to refresh the uptrend.

Bottom line strategy: Will the uptrend continue or could we see a reversal to the downside? I am not certain but if I went long I would risk a close below $97.

Get an email alert each time I write an article for Real Money. Click the "+Follow" next to my byline to this article.

Employees of TheStreet are restricted from trading individual securities.

TAGS: Investing | Stocks | Technical Analysis | Trading | Semiconductors & Semiconductor Equipment | Technology

More from Investing

Delisting of Chinese ADRs Is Part of the New Cold War

Jim Collins
Aug 12, 2022 2:00 PM EDT

The process of dealing with a delisted stock is painful for individual investors and impossible for many institutional investors.

Inflation May Be Slowing, but That Doesn't Mean the Fed Is

Maleeha Bengali
Aug 12, 2022 1:00 PM EDT

Investors are cheering the slowing pace of inflation's increase, but prices are still way up, which means the Fed is going to continue to take liquidity out of the system.

3 International Energy Stocks for Dividends And Growth

Bob Ciura
Aug 12, 2022 11:30 AM EDT

International companies often trade at discounts to their American counterparts, which can mean better value and better yields as well.

Where Are Crude Prices Heading, and Could They Clog Up a Recovery?

Bruce Kamich
Aug 12, 2022 11:00 AM EDT

Let's check the charts to see where we can expect oil prices to flow.

It's Far Too Early for a Victory Lap in the Race Against Inflation

Bret Jensen
Aug 12, 2022 10:45 AM EDT

Prices are continuing to rise, particularly for labor and rent, and that could put a drag on profits and consumer spending.

Real Money's message boards are strictly for the open exchange of investment ideas among registered users. Any discussions or subjects off that topic or that do not promote this goal will be removed at the discretion of the site's moderators. Abusive, insensitive or threatening comments will not be tolerated and will be deleted. Thank you for your cooperation. If you have questions, please contact us here.

Email

CANCEL
SUBMIT

Email sent

Thank you, your email to has been sent successfully.

DONE

Oops!

We're sorry. There was a problem trying to send your email to .
Please contact customer support to let us know.

DONE

Please Join or Log In to Email Our Authors.

Email Real Money's Wall Street Pros for further analysis and insight

Already a Subscriber? Login

Columnist Conversation

  • 08:44 AM EDT PETER TCHIR

    CPI Beats Expectations, But Maybe Not the 'Whisper'?

    Slightly better-than-expected inflation across the...
  • 01:44 PM EDT STEPHEN GUILFOYLE

    This Holding Lights Up With Strong Earnings

    Check out the latest from TheStreet's Stocks Under...
  • 09:24 AM EDT PETER TCHIR

    Jobs Report Reaction: Incredibly Strong, But Questions to Ask

    An incredibly strong July jobs report. Not only d...
  • See More

COLUMNIST TWEETS

  • A Twitter List by realmoney
About Privacy Terms of Use

© 1996-2022 TheStreet, Inc., 225 Liberty Street, 27th Floor, New York, NY 10281

Need Help? Contact Customer Service

Except as otherwise indicated, quotes are delayed. Quotes delayed at least 20 minutes for all exchanges. Market Data & Company fundamental data provided by FactSet. Earnings and ratings provided by Zacks. Mutual fund data provided by Valueline. ETF data provided by Lipper. Powered and implemented by FactSet Digital Solutions Group.

TheStreet Ratings updates stock ratings daily. However, if no rating change occurs, the data on this page does not update. The data does update after 90 days if no rating change occurs within that time period.

FactSet calculates the Market Cap for the basic symbol to include common shares only. Year-to-date mutual fund returns are calculated on a monthly basis by Value Line and posted mid-month.

Compare Brokers

Please Join or Log In to manage and receive alerts.

Follow Real Money's Wall Street Pros to receive real-time investing alerts

Already a Subscriber? Login