Synopsys Triggers RSI Oversold, KDJ Golden Cross on 15-Minute Chart

According to Synopsys's 15-minute chart, there are two significant technical indicators that have been triggered. Firstly, the Relative Strength Index (RSI) has reached an oversold level, indicating that the stock price has dropped rapidly and is currently trading below its fundamental support level. Secondly, the KDJ Golden Cross has been triggered, which suggests that the momentum of the stock price is shifting towards an upward trend and has the potential to increase further.

Synopsys (SNPS) experienced a challenging trading day on July 2, 2025, closing at $596.80, down by 1.6% from the previous session. This decline was slightly more pronounced than the S&P 500's 0.43% loss and the tech-heavy Nasdaq's 0.22% drop. Over the past month, Synopsys's stock has risen by 0.83%, lagging the broader Computer and Technology sector's 2.56% gain and the S&P 500's 2.65% increase [1].

Investors are closely monitoring Synopsys as the company prepares to release its earnings report on September 9, 2025. Analysts forecast an earnings per share (EPS) of $3.84, representing an 11.95% year-over-year increase, and revenue of $1.77 billion, up 15.9% from the prior year [1]. For the annual period, the Zacks Consensus Estimates anticipate earnings of $15.13 per share and revenue of $6.77 billion, indicating shifts of +14.62% and +8.03%, respectively, from the previous year.

Technical indicators provide mixed signals for Synopsys. The Relative Strength Index (RSI) has reached an oversold level, suggesting the stock price has dropped rapidly and is currently trading below its fundamental support level. Conversely, the KDJ Golden Cross has been triggered, indicating a potential shift in momentum towards an upward trend [2].

The company's recent performance has been impacted by U.S. export curbs on China, leading to a 3.09% price drop. Synopsys has suspended sales and services in China to comply with new restrictions on semiconductor design software sales [2]. Additionally, Quest Software's $350 million raise for AI development and the Rivian-Volkswagen collaboration could indirectly boost demand for chip design tools, potentially benefiting Synopsys in the long term [2].

Analysts are divided on Synopsys, with a simple average rating of 4.50 and a performance-weighted rating of 1.62. The company's fundamentals remain reasonably strong, with an internal diagnostic score of 6.54. However, technical conditions are weak, with three bearish indicators and no bullish ones active, reflecting poor momentum and a high risk of further decline [2].

Synopsys is currently holding a Zacks Rank of #4 (Sell), with a Forward P/E ratio of 40.08 and a PEG ratio of 2.87. The Computer - Software industry, part of the Computer and Technology sector, has a Zacks Industry Rank of 46, placing it in the top 19% of all 250+ industries [1].

Conclusion:
Synopsys faces a challenging short-term outlook due to weak technical conditions, bearish signals, and regulatory pressures in China. While fundamentals remain reasonably strong, the market seems to be pricing in caution and potential headwinds. Investors should consider waiting for a pull-back or clearer signs of stability before entering or increasing positions in SNPS.

References:
[1] https://finance.yahoo.com/news/synopsys-snps-dips-more-broader-214502710.html
[2] https://www.ainvest.com/news/stock-analysis-synopsys-outlook-technical-weakness-mixed-analyst-views-signal-cautious-approach-2508/