CDNS - Another Tech is Approaching Deep Correction?

Is it time for overpriced tech stocks like CDNS , 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 CDNS ?

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

Thanks