The Relative Strength (RS) Rating for Cadence Design Systems jumped into a higher percentile Monday, as it got a lift from 67 to 71.
This unique rating tracks technical performance by using a 1 (worst) to 99 (best) score that indicates how a stock's price action over the trailing 52 weeks compares to other publicly traded companies.
History shows that the stocks that go on to make the biggest gains typically have an RS Rating of above 80 in the early stages of their moves. See if Cadence Design Systems can continue to rebound and clear that threshold.
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Cadence Design Systems broke out earlier, but has fallen back below the prior 316.37 entry from a cup with handle. If a stock you're tracking clears a buy point then falls 7% or more below the original entry price, it's considered a failed base. Wait for the stock to set up and breakout from a new chart pattern and buy point. Also understand that the latest pattern is a later-stage base, which makes it riskier to establish a new position or add shares to an existing one.
In terms of top and bottom line numbers, the company has posted two quarters of increasing earnings growth. Top line growth has also increased over the same time frame.
Cadence Design Systems holds the No. 1 rank among its peers in the Computer Software-Design industry group. Autodesk and Altair Engineering Cl A are also among the group's highest-rated stocks.
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