Synopsys Jumps 7.29% On Bullish Technical Breakout To 635.81

Synopsys (SNPS) surged 7.29% in the latest session, closing at $635.81 after trading between $613.58 and $647.20 on elevated volume of 3.20 million shares. This robust advance follows a brief consolidation phase, prompting a multifaceted technical assessment.
Candlestick Theory
The most recent candle forms a decisive bullish marubozu (minimal wicks, full-bodied), engulfing the prior two sessions’ losses. This signals strong buying conviction, with $647.20 now acting as immediate resistance. Key support rests at $613.58 (today’s low), backed by the psychological $600 level and the July 22 swing low of $578.87. A cluster of closes near $615–$618 earlier this month further reinforces this support zone.
Moving Average Theory
Synopsys trades decisively above all major moving averages (50-DMA ~$570, 100-DMA ~$530, 200-DMA ~$480), confirming a sustained uptrend. The 50-DMA accelerated upward after a golden cross with the 200-DMA in late April, while the shorter 20-day EMA ($608) recently acted as springboard for the breakout. The ascending slope across all MAs underscores bullish alignment, though extended deviations may invite short-term mean reversion.
MACD & KDJ Indicators
The MACD (12,26,9) crossed bullishly above its signal line during the surge, accompanied by expanding histogram bars—a momentum confirmation. KDJ (9,3,3) shows the %K line (89) vaulting above %D (78) from oversold territory last week, reflecting accelerating upside momentum. While MACD’s crossover preceded price strength, KDJ’s near-overbought reading warrants monitoring for exhaustion signals.
Bollinger Bands
Today’s close above the upper Bollinger Band ($625, 20-day SMA basis) denotes extreme near-term momentum, supported by a volatility expansion (band width +25% vs. prior week). Such breakouts often precede continuation when coupled with high volume, though closes above the upper band for multiple sessions could foreshadow consolidation. The recent squeeze in late July set the stage for this directional resolution.
Volume-Price Relationship
Volume surged to 3.20 million shares today—well above the 20-day average (~1.9 million)—validating the bullish breakout. Earlier distribution during pullbacks (e.g., July 28 volume 1.77 million vs. rally day July 22 at 2.89 million) suggested selling exhaustion. Sustained volume above 2.5 million would bolster upside sustainability, while divergence on new highs would caution.
Relative Strength Index (RSI)
The 14-day RSI spiked to 76 today, breaching overbought territory (>70) for the first time since March. While indicative of stretched momentum, RSI can remain elevated in strong trends. Bearish divergence would emerge only if prices make higher highs amid declining RSI—not currently observed. The indicator’s warning nature advises vigilance but not reversal assumptions.
Fibonacci Retracement
Applying Fib levels to the swing low of $460.89 (June 23) and today’s high of $647.20, key retracement supports emerge at $591.71 (23.6%), $564.51 (38.2%), and $542.66 (50%). The July 28 low of $588.37 respected the 23.6% level before reversing—now a critical floor. Projecting the 61.8% extension from this trough targets $683, aligning with psychological resistance.
Confluence and Divergence
Confluence is evident: Moving averages stack bullishly, MACD/KDJ momentum signals align with volume-backed breakout, and Fib support underpins candlestick-based levels. Minor divergence exists in RSI’s overbought reading against unbroken price strength—a common occurrence in powerful rallies but warranting tighter risk management. Overall technical structure favors upside continuation toward $647–$683, provided supports near $613–$600 hold.