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