Score 8.2 (out of 10): CADENCE DESIGN sets up for +15.3% rally in 3 months

84

What’s Going On Here?

Cadence Design Systems is aiming to cash in on the new custom-chip era. The microchip design software maker is betting on growth from automakers and other chip users. ‘Wall Street’ sees the shares +33% higher in 2022.

Why Now?

CADENCE DESIGN SYS INC has triggered a new technical analysis ‘rally reversal’ signal. During similar occasions, CADENCE DESIGN SYS INC shares had a median return of +15.3%, over the following 3 months – based on 10 historical occasions with 8 of those showing positive returns (80%). This buy signal for CADENCE DESIGN SYS INC received a high score of 8.2 (out of 10). This insight was generated on 2022-February-8 with last price of 148.37.

What’s This Company About?

CADENCE DESIGN SYS INC is in the Computer Aided Design business. Based on the last 2 years’ risk/return profile, this asset is seen as Less Risky. ‘Wall Street’ analysts think the stock price will be worth +33% (average). Ticker symbol: CDNS US.

What’s My Risk / Reward and Time Horizon?

We found 3 months to be the optimal trade horizon, after testing a number of possible alternatives (accuracy of previous returns). Otherwise consider closing out this trade once the target level of 171.12 (+15.3%) has been reached. Based on CADENCE DESIGN SYS INC’s recent up and down swings, LongShortBets suggests considering to set a stop loss level for this insight at 145.87 (last price at 148.37), which is equivalent to a -1.7% decline.

Returns during similar periods:

The chart above shows the previous returns (in %) based on similar setups with the most recent ‘insight’ shown under (1), the second most recent ‘insight’ shown under (2), etc. 

Previous episodes:

3.7% (October-2021), 25.3% (May-2021), -5.1% (February-2021), 31.2% (September-2020), 49.9% (March-2020), 15.9% (October-2019), -2.9% (August-2019), 6.2% (June-2019), 45.2% (December-2018), 14.8% (October-2018).

Historical Chart:

———————————————————————

Summary:

NameCADENCE DESIGN SYS INC
ViewUp
Star (1 to 10)8.2
Target+15.3%
Time3 months
Hit Rate80%

Popular Insights:

Leave a Reply