Synopsys Extends Slide With 9.07% Two-Day Drop As Technicals Signal Further Weakness

Synopsys (SNPS) declined 4.53% in the latest session to $468.09, extending losses to two consecutive days for a cumulative drop of 9.07%. This downturn follows a volatile period characterized by a severe 35.84% single-day collapse on September 10, 2025, and a partial rebound preceding the recent weakness.
Candlestick Theory
Recent candlesticks reveal a technically vulnerable structure. The September 22 bullish candle (close: $514.79) tested resistance near $516 but was immediately reversed by two consecutive long-bodied bearish candles. The latest session printed a 4.53% decline on a $464.24–$491.32 range, closing near the low with minimal lower shadow—a classic continuation pattern signaling persistent distribution. Critical support now resides at the September 18 low of $448, while resistance is layered between $491 (recent high) and the $516 recovery peak.
Moving Average Theory
Price configuration relative to key moving averages underscores entrenched bearish sentiment. The 50-day SMA slopes downward near $480, having been breached decisively during the current sell-off. More significantly, the 100-day SMA ($510) and 200-day SMA ($520) loom overhead, with the current price trading 10–11% below these thresholds. This alignment confirms a bearish long-term trend structure, with dynamic averages acting as robust resistance zones.
MACD & KDJ Indicators
Both momentum oscillators signal strong bearish bias. The MACD histogram persists in negative territory below its signal line, with the 12/26-day EMA divergence expanding during the two-day decline—a classic bearish momentum signature. Meanwhile, the KDJ oscillator shows its K-line (58) crossing below the D-line (62) from overbought territory, initiating a fresh sell signal. While the J-line (48) isn’t yet oversold, the configuration suggests room for further downside before stabilization.
Bollinger Bands
Bollinger Band dynamics reflect escalating bearish volatility. The 20-day bands expanded sharply during September’s crash, then contracted modestly during consolidation. Recent price breakdown triggered renewed band widening, with the current close pressing the lower band ($462). This deviation often precedes either trend acceleration or tactical oversold bounces, but with the middle band (20-SMA) declining near $490, any rebound would face technical headwinds.
Volume-Price Relationship
Volume patterns lack conviction for recovery. The September 11–18 rebound occurred on robust volume (8.2–15.2 million shares), but subsequent rallies deteriorated on lower turnover. The recent sell-off registered moderate volume (3.5–4.0 million shares), suggesting limited capitulation but also no evidence of accumulation. This divergence implies weak institutional support at current levels, increasing vulnerability to further technical selling.
Relative Strength Index (RSI)
The 14-day RSI reading of 35 approaches but avoids oversold territory (>30), reflecting residual downside momentum potential. Notably, the RSI established a lower high during the September 22 rally versus price’s higher high—a bearish divergence that foreshadowed the current decline. While readings near 30 would signal technical exhaustion, RSI can remain depressed during sustained trends, advising against premature reversal anticipation.
Fibonacci Retracement
Fibonacci levels derived from the September 9 high ($614.89) to September 10 low ($380.84) offer critical reference. The 61.8% retracement ($525) capped the September 22 rally precisely, triggering the current reversal. Price now tests the 38.2% level ($470.5), which aligns with the latest close ($468.09). Conclusive breach opens the 23.6% retracement at $436, while holding could prompt short-term consolidation. The confluence of Fibonacci and psychological support near $470 makes this a pivotal technical zone.
Multiple indicators corroborate bearish dominance. Resistance rejection near the 61.8% Fibonacci level, confirmed by MACD deterioration and volume divergence, suggests limited recovery potential. The confluence of Bollinger Band expansion, moving average resistance, and RSI positioning indicates probability favors further downside, though tactical bounces may emerge near the $448–$460 support cluster. Sustained trade below the 38.2% Fibonacci threshold ($470.5) would significantly increase bearish technical conviction.