Cadence Design Systems Inc

CDNS has decisively broken below its July–August support cluster on heavy volume, confirming a distribution phase via the Support Failure pattern and loss of buyer absorption. The price is extended below the declining EMAs and long-term moving averages, indicating bearish continuation. Short-term timing is favorable for bearish execution, though extreme oversold conditions pose a bounce risk. Execution should focus on participating in the breakdown now or on brief retests into the former support zone acting as resistance.

• ↑Q2 revenue $1.58B (+24% YoY) with 45.5% non-GAAP margin.
• ↑Record backlog at $8.1B; 2026 revenue growth guidance lifted to 19%.
• ↓Negative earnings yield and elevated forward P/E suggest high valuation.