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Possible Bearish Inside Day Candle Pattern Detected for Cadence Design Systems (NASDAQ:CDNS)

By James Quinn

SmarTrend's candlestick scanner has spotted a possible bearish inside day candle pattern in Cadence Design Systems (NASDAQ:CDNS) based on the price action in the company's shares. Yesterday's price range of $31.43 and $31.64 is within the prior day's high and low of the day. This trading action often signifies indecision by bulls and bears to drive prices higher or lower and often implies a possible change in trend. Owners of Cadence Design Systems may want to consider a possible hedge in the event a pullback occurs. Look for confirmation in the next few trading days.

Cadence Design Systems, Inc. provides software technology, design and consulting services and technology. The Company licenses its electronic design automation software technology and provides a variety of professional services. Cadence's design realization solutions are used to design and develop complex chips and electronic systems, including semiconductors.

In the past 52 weeks, shares of Cadence Design Systems have traded between a low of $18.13 and a high of $31.66 and closed yesterday at $31.60, which is 74% above that low price. In the last five trading sessions, the 50-day moving average (MA) has climbed 0.7% while the 200-day MA has risen 0.3%.

Cadence Design Systems (NASDAQ:CDNS) defies analysts with a current price ($31.60) 8.2% above its average consensus price target of $29.00. The stock should find initial support at its 50-day moving average (MA) of $23.00 and further support at its 200-day MA of $21.41.

SmarTrend recommended that subscribers consider buying shares of Cadence Design Systems on February 2nd, 2017 as our proprietary SmarTrend analytics indicated a new Uptrend was in progress when shares hit $27.72. Since that recommendation, shares of Cadence Design Systems have risen 14.2%. We continue to monitor CDNS for any potential shift so investors can protect gains and will alert SmarTrend subscribers immediately.

Keywords: bearish am inside day candle cadence design systems

Ticker(s): CDNS