SNPS (Synopsys, Inc.) — 2H TF | Long Setup

11 set

SNPS (Synopsys) experienced a parabolic run into $651 ATH, followed by a brutal selloff wiping out nearly $250 in value in a matter of days. This sharp capitulation was after the earnings shock and news impact. However the company fundamental and historical growth still very healthy!

Currently, price is bouncing around $409–412, just above the major demand zone at $368–385. On the upside, clear supply zones sit at $605–616 and $639–651, which will act as hurdles for any recovery rally.

Likely linked to earnings or lowered forward guidance (Synopsys is a leader in EDA software, highly sensitive to semiconductor cycle).

Broader tech weakness and yield-driven selloff could have amplified losses.


🔀 Trend & Structure:

Primary Trend: Bullish (macro still intact from 2022 lows, but in deep correction)

Short-Term: Bearish momentum

Setup: Bounce from demand with potential retracement toward supply zones

🟩 Key Supply/Demand Zones:

Demand Zone (Buy Area): $368 – $385

Supply Zones (Sell Areas):

$605 – $616

$639 – $651

🎯 Trade Setup (Swing Long Reversal Play):

Entry: $412–415 (current levels)

Stop Loss: $364 (below demand invalidation)

Take Profit 1: $605

Take Profit 2: $639

Risk/Reward: ~4.9R to TP1

Max Risk: 1–2% of capital only (high volatility stock)

🧭 Trade Management:

Move SL → BE once $490 is cleared

Scale partial at $550, hold runner to $605+

If $605 supply breaks, $639–651 retest possible


“Volatility is the price you pay for opportunity.”

⚠️ Disclaimer:

This is not financial advice. SNPS is in a high-risk post-earnings selloff setup. Only attempt this trade with tight risk management.

#SNPS #Synopsys #TechStocks #SupplyAndDemand #SwingTrade #ReversalSetup #RiskReward #TradingView

19 set

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