Cadence Design Systems Inc

CDNS is in a Stage 3 distribution phase with an active Support Failure pattern signaling loss of buyer support and potential for accelerated declines. Price has broken below major moving averages on high volume and remains extended without sign of exhaustion. Medium-term bias is bearish, and execution favors selling into any short-covering rallies up into the 9/21 EMA resistance zone.

• ↑Q1 revenue $1.47B (+19% YoY), driven by AI-related bookings
• ↑Non-GAAP operating margin at 45% demonstrates strong cost control
• ↓Negative earnings yield highlights weak returns on invested capital