CDNS - Another Tech is Approaching Deep Correction?

Is it time for overpriced tech stocks like Cadence Design Systems, specialising in software and hardware, to go into considerable correction to let some steam out?

Fundamental indicators:

• Revenue and Profits - demonstrated consistent long-term earnings growth over the past 10 years
  
• Profit margin - 23% in 2021 but dropped from 42% in 2020
  
• P/E - extremely overpriced with 56x ratio
  
• Liabilities - no problems with debt
  

Technically:

• An impulse like correction in March 2020 has completed Running Flat (ABC) wave 4 as part of bull trend that lasted since 2016
  
• Since then the final wave 5 has commenced with 2 impulses that formed a zig-zag of wave 1
  
• This choppy movement suggests that it is not a rapid impulse developing but an Ending Diagonal with 3-3-3-3-3 structure
  
• Hence two more zig-zags can be expected to reach and slightly update historic maximum of $192
  
• Once the global wave is completed a deeper correction can be expected to the levels of $95-$120 which represent 0.382 and 0.5 Fibonacci retracement levels respectively
  

What do you think about this scenario for Cadence Design Systems?

Please share your thoughts in the comments and like this idea if you would like to see more stocks analysed using Elliott Waves.

Thanks