Cadence Design Systems (CDNS): Chart Analysis

As you can see from the chart above, CDNS has formed a ascending triangle over the past 5 years. The money seems to be flowing into the stock as indicated by the OBV.

Generally, it is believed that price follows volume. The volume seems to be picking up over the past couple of months. In the chart above, you may notice that it has broken above the consolidation range and is poised to move higher.

A reasonable entry point can be in the $18.60 area (It may or may not reach this price...be your own judge) with an exit at around $24.00 which also happened to be a resistace in early 2002.