SNPS Jumps to $438, Breaks Resistance and Eyes $480
$Synopsys(SNPS)$ Surged +4.85%: EDA Giant Breaks Resistance, Targeting $480
Latest Close Data
SNPS closed at $438.29 on Dec 2, up +4.85% (+$20.28) from Friday's $418.01 close.
The stock sits 32.7% below its 52-week high of $651.73, showing significant recovery potential from October lows.
Core Market Drivers
Synopsys benefited from strong semiconductor sector momentum and AI chip design demand acceleration.
The EDA software leader continues capturing market share as chip complexity drives higher design automation needs.
Volume surged 3.11x average levels, indicating institutional accumulation.
Technical Analysis
RSI (6-day) at 83.91 signals overbought conditions but confirms strong bullish momentum.
MACD shows improving convergence with DIF at -8.29 vs DEA at -15.36, generating positive momentum crossover.
KDJ indicators (K:83.81, D:69.89) remain in overbought territory but maintain upward trajectory.
Key Price Levels
Primary Support: $396.18 (strong demand zone)
Immediate Pivot: $429.20 (today's low)
Strong Resistance: $447.00 (today's high, critical breakout level)
Valuation Perspective
Current P/E TTM of 34.59x trades below historical average of 37.50x, suggesting reasonable valuation.
Forward P/E at 29.65x represents significant discount to +1 Std Dev level of 42.04x, indicating undervaluation versus growth prospects.
Analyst Targets
23 analysts maintain bullish outlook with average target of $551.33 (26% upside).
Strong consensus: 6 Strong Buy, 13 Buy, 4 Hold, 2 Underperform ratings reflect confidence in AI-driven growth cycle.
Weekly Outlook
Expect continued momentum testing $450-460 resistance zone. Break above $447 targets $480-500 range.
Failure to hold $430 support could trigger pullback to $410-415 consolidation area.
Risk Disclaimer
This analysis is for informational purposes only and not investment advice. Past performance doesn't guarantee future results. Consult financial advisors before trading.
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