Synopsys Jumps 3.56% As Technicals Signal Bullish Rebound Above Key Support

Synopsys (SNPS) gained 3.56% in the latest session, closing at $569.10 after trading between $549.00 and $570.38 on volume of 3.18 million shares, signaling renewed bullish momentum after recent volatility.
Candlestick Theory
The most recent candle formed a robust bullish marubozu pattern, closing near the session high after bouncing sharply from $549 support. This level aligns with the 2025-07-07 low ($534.34) and the 2025-06-20 high ($482.53), establishing it as a technical floor. Resistance is evident near $570-$580, where price rejection occurred on 2025-07-14 (high: $579.00) and 2025-07-11 (high: $572.91). Breakout sustainability above $575 would signal strength.
Moving Average Theory
Synopsys trades above all key moving averages (50D ~$525, 100D ~$490, 200D ~$450), confirming a primary uptrend. The 50-day MA provided dynamic support during the late-June pullback. Golden crosses persist with the 50D above both 100D and 200D, though flattening 50-day momentum since May suggests potential near-term consolidation. The stacked order of shorter MAs above longer ones maintains bullish structure.
MACD & KDJ Indicators
MACD (12,26,9) shows a tightening histogram near the zero line after a mid-June bearish crossover, suggesting waning downward momentum. KDJ reveals a bullish setup: The K-line (55) recently crossed above D-line (48) from oversold territory (<30 in late June), while J-line (69) approaches overbought territory. Both oscillators align in signaling recovering bullish momentum, though MACD’s lagging signal warrants monitoring for confirmation.
Bollinger Bands
Price rebounded sharply from the lower Bollinger Band (~$540) in the past week, currently testing the 20-period midline (~$555). Band width contracted notably in June (indicating low volatility) before expanding in July. The close near the upper band ($578) signals short-term strength. A sustained move above the midline could trigger band expansion and support continuation.
Volume-Price Relationship
Recent volume patterns raise caution: The 3.56% advance on 2025-07-15 occurred on 3.18M shares – notably lower than the 5.08M volume during the 1.74% decline on 2025-07-14. This divergence suggests inadequate buying conviction. However, the 2025-07-03 rally (4.90% on 2.02M volume) demonstrated high-confidence accumulation. Sustained upside requires volume expansion above the 10-day average (~1.8M).
Relative Strength Index (RSI)
The 14-day RSI (55) sits neutrally after recovering from oversold (28.6 on 2025-06-26). Current levels avoid overbought (>70) or oversold (<30) extremes, allowing room for additional upside. Notably, RSI formed a positive divergence in late June as price made lower lows while RSI made higher lows, foreshadowing the current rebound.
Fibonacci Retracement
Applying Fib levels to the April-July rally (swing low: $380.90 on 2025-04-07, high: $579.00 on 2025-07-14) reveals key supports: 38.2% ($508), 50% ($480), and 61.8% ($452). The recent pullback held firmly above the 38.2% retracement, demonstrating strong trend adherence. Resistance emerges at the 127.2% extension level ($595) – a potential upside target on breakout above $580.
Confluence & Divergences
Confluence exists between $549 support (candlestick low), the 50-day MA, and 38.2% Fib level, creating a high-confidence bounce zone. KDJ/RSI positive divergences in late June aligned with this support. However, the volume-price divergence during the latest rally introduces caution. Bollinger Band midline ($555) and Fibonacci extension ($595) offer near-term directional triggers. Overall, the technical structure favors upside continuation above $575, though confirmation through volume expansion and MACD crossover would strengthen conviction.