Synopsys (SNPS) is a "provider of electronic design automation (EDA) software and associated services. The company's product portfolio comprises application security, semiconductor IP, verification, design and silicon engineering".
I have no idea what's behind all this technology, but the charts are simple enough for me to understand.
In this daily bar chart of SNPS, below, I can see that prices soared about $100 last month. This stock needs to "catch its breath" and trade sideways for a while. SNPS trades above the rising 50-day moving average line and above the rising 200-day line.
The On-Balance-Volume (OBV) line is on the move to the upside and helps to support the bullish case. The Moving Average Convergence Divergence (MACD) oscillator is bullish.
In this weekly Japanese candlestick chart of SNPS, below, I can see a strong three-year advance. Prices trade above the rising 40-week moving average line. The most recent candle pattern is a "gravestone doji" and marks a balance between bulls and bears and can be a top reversal pattern. A bearish candle pattern this week would be confirmation.
The weekly OBV line is positive. The MACD oscillator is bullish.
In this daily Point and Figure chart of SNPS, below, I can see an upside price target in the $523 area.
In this second Point and Figure chart of SNPS, below, I used weekly price data. Here the software projects a price target of $679.
Bottom line strategy: After a big rally and a gravestone doji on the weekly candlestick chart, I expect to see SNPS trade sideways for a period of time. Traders should be patient and wait for a dip in the $450-$35 area before probing the long side. Risk to $420.
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