Synopsys Jumps 21% In 3 Days To $514.79 As Buyers Reverse 35% September Crash

Synopsys (SNPS) has demonstrated a robust recovery in recent trading sessions, surging 3.89% to close at $514.79 on 2025-09-22. This marks the third consecutive day of gains, with a cumulative 21.01% advance, signaling a strong bullish reversal following the volatility observed earlier in September. The price action reflects renewed buyer conviction after the steep decline on 2025-09-10 (-35.84%), with technical indicators now suggesting a cautiously optimistic medium-term outlook.
Candlestick Theory
Recent price action shows three consecutive bullish candles with progressively higher closes, confirming a short-term uptrend. The rally from the $417.51 low (2025-09-17) to current levels breached the immediate resistance of $480–$500, which now acts as support. Key resistance emerges at the psychological $520 level, followed by the $550–$600 zone where previous consolidation occurred. A significant long-term resistance remains at the pre-crash high of $614.89 (2025-09-08), while the $380–$390 level serves as critical support given its role as the 12-month low.
Moving Average Theory
The 50-day SMA (approximately $556) and 100-day SMA (approximately $550) both reside above the current price, indicating intermediate-term bearish pressure. However, the 200-day SMA (approximately $526) is trending upward and remains below the price, affirming the longer-term bullish structure. The alignment—50-day > 100-day > 200-day—suggests a resilient long-term uptrend despite recent turbulence. A decisive break above the 50-day SMA would signal strengthening bullish momentum, whereas failure to hold the 200-day SMA may invalidate the recovery thesis.
MACD & KDJ Indicators
The MACD histogram shows upward momentum, with the MACD line crossing above its signal line recently, confirming bullish reversal potential. Meanwhile, the KDJ oscillator reveals overbought conditions: The latest %K reading at 99.37 (driven by the surge to $514.79) exceeds the 90 threshold, signaling extreme short-term optimism. While this divergence suggests potential near-term consolidation, the MACD’s bullish crossover may offset immediate downside risk. Investors should monitor for a potential "bearish cross" in KDJ (if %K dips below %D) as a warning of pullback vulnerability.
Bollinger Bands
Bollinger Bands highlight elevated volatility, with the 20-day SMA at $530 and bandwidth expanding after the recent rally. The price currently trades near the middle band, indicating balanced momentum between bullish sentiment and overbought caution. A continued hold above $510 could target the upper band (approximately $610), whereas a rejection here might retest the lower band (~$450). The bands’ width remains historically broad, emphasizing ongoing market sensitivity to news.
Volume-Price Relationship
Volume patterns strongly validate the rally: The first day of gains (2025-09-18, +12.86%) saw volume spike to 8.24 million shares, followed by elevated activity (6.1 million and 4.74 million shares) on subsequent up days. This distribution—highest volume on the initial breakout—suggests institutional accumulation. Notably, capitulation volume appeared during the crash (21.16 million shares on 2025-09-10), creating a sustainable base. Volume divergence is absent, supporting the rally’s legitimacy.
Relative Strength Index (RSI)
The 14-day RSI reads near 48, remaining in neutral territory despite the rally. This neutrality—contradicting KDJ’s overbought signal—stems from the inclusion of the September crash’s extreme losses in the 14-day calculation. While RSI below 50 highlights lingering bearish inertia, its upward trajectory from oversold conditions aligns with the recovery. A decisive move above 60 would reinforce bullish momentum, though sustained RSI readings >70 would be required to signal overbought risks.
Fibonacci Retracement
Applying Fibonacci to the swing low at $417.51 (2025-09-17) and swing high of $614.89 (2025-09-09), key retracement levels emerge at $516 (50%), $539 (38.2%), and $568 (23.6%). The price faces critical resistance at the 50% level ($516), aligning with the daily high of $515.64 on 2025-09-22. Failure to breach this confluence zone may trigger a retreat toward $480 support. A confirmed break above $516 would open a path to the 38.2% ($539) and 23.6% ($568) resistance levels, reinforcing the recovery narrative.
Conclusion
Technical indicators present a confluence of cautiously bullish signals: Volume confirms the rally’s strength, Fibonacci and moving averages highlight critical resistance near $516, and MACD supports upside continuation. However, KDJ overbought conditions and RSI neutrality imply near-term consolidation risks. A decisive break above the $516 Fibonacci/SMA cluster would likely accelerate gains toward $539–$568. Failure here might retest $480–$500 support. Investors should monitor volume on directional breaks for confirmation.