CDNS – Cadence Design Systems, Inc.

Cadence breaks to fresh all-time highs.

Date: 3 June 2026

Sector: Technology Services / Packaged Software

Exchange: NASDAQ

TradingView link: 1M candle & 4H candles

Opening/macro/sector context

Cadence Design Systems is involved in the development of integrated circuits and electronic devices. There is also an overlapping technology theme here, given its exposure to technology services and software.

It is not necessarily the case that every company in this space is directly involved in AI or data centre build-outs, but the technology sector as a whole is clearly in vogue at the moment. As the quote goes, a rising tide lifts all boats.

In this case, there is a feeling that much of the technology sector, especially companies involved in hardware and related infrastructure, is being re-rated higher. This is even more interesting when considered alongside the wider onshoring theme.

So there are a couple of overlapping ideas here: technology hardware and onshoring.

Long-term structure

Cadence has a long history, dating back to 1987, when it first floated at approximately $1.50.

As of today, the stock has broken to an all-time high and is currently trading around $408.

To get the full breadth of the move, I have included two chart links: one for the 1-month candles and one for the 4-hour candles.

Over the 1-month timeframe, the chart clearly shows a long sideways base from when it floated until it finally broke out of that box in May 2018.

The following month, the price returned to test the level that had previously been resistance around $40, which then became support. From there, the stock began a much stronger long-term advance.

On the monthly timeframe, the structure shows a succession of higher highs and higher lows.

There was a brief period of consolidation, but the stock never broke structure. It simply moved sideways before continuing higher again.

After that, the stock continued moving upwards at almost a 45-degree angle, without offering much of a meaningful pullback on the monthly timeframe.

More recently, we had another period of sideways consolidation, marked by the second pink box. Momentum slowed, but the stock continued to hold above the lower end of that box at around $221.

On the top side, the $378 area acted as resistance and was touched on three separate occasions.

Lower timeframe / recent structure

On the 4-hour timeframe, looking at the most recent breakout, the stock broke out above the pink box before briefly dipping back below it.

After that, price continued to interact with the box, touching it several times across four or five grey candles.

This week, the stock jumped out of the pink box again and has now remained above it for the last three days.

That means the stock has met my criteria for an entry.

The next step is to look for a good entry point. Ideally, this would be a grey-to-blue turn on the 4-hour timeframe, preferably after a pullback back towards the pink box.

The ideal area would be a retest of the old resistance, now support, around $377.

Entry trigger:

A 4-hour grey-to-blue turn.

Ideally, this would happen after a pullback towards the pink box and the old resistance/new support area around $377.

Initial stop loss:

Last 4-hour swing low.

Multi-timeframe correlation:

3M: Blue candle, having just been grey

1M: Blue candle

1W: Blue candle

1D: Blue candle

4H: Grey candle

The main thing now is to wait for the 4-hour candle to turn blue, then take the trade.

When should I tighten the stop-loss?

Tighten the stop-loss every time the stock makes a clear new 4-hour swing low.

When do I add to the position?

Add to the position every time the stock makes a clear new 4-hour swing low, provided the wider trend remains intact.

Potential target range:

$407 – $417

Activated price targets:

2

Am I in this trade?

No

Current R multiple:

0R