Nearly Vertical Climb Northward
Stock's 21% surge nears critical resistance after bullish reversal
A low of $263.38 on April 10 set the stage for a bullish double-bottom formation, followed by a dramatic surge the next day that kicked off a steep rally. This rapid ascent quickly broke above the upper boundary of the downtrend channel that had been in place since the all-time high, clearing resistance levels at $304.95 and $311.24.
Today, the stock has reached my top-pick target of $328. Since its inclusion on the list, the share price has gained nearly 21%. However, this also brings it into a critical resistance zone extending up to $341.32, where a sharp correction could begin at any moment. For this reason, I am removing Cadence from my list. Investors looking to stay in the stock should closely monitor its behavior at this barrier. If, instead of reversing, the price breaks decisively above $341.32, that would be even better—potentially paving the way for further gains toward $357 and, later, a retest of the record high.
If profit-taking sets in now, however, the stock could quickly drop back to support at $311.24. At that level, traders might watch for bullish reversal candlesticks. Should the price break below this mark, though, a sell-off targeting $295.18 could follow.
Technical Conclusion:Cadence Design's stock has now reached a key target and resistance area. Only a sustained breakout above $341.31 would signal a continuation of the fundamentally intact rally. While a pullback is likely at this stage, the bullish trend would only come under serious pressure if the price falls below $311.24.
