| Cadence Design Systems provides solutions that enable its customers to design electronic products. Co.'s products offerings include software, hardware, services and reusable integrated circuit (IC) design blocks, which are referred to as intellectual property (IP). Co. provides maintenance for its software, hardware, and IP product offerings. Co. combines its products and technologies into categories related to design activities: Functional Verification (including hardware for emulation and prototyping); Digital IC Design and Signoff; Custom IC Design and Simulation; System Interconnect and Analysis (printed circuit boards and IC package); and IP (includes design IP and verification IP). |
When researching a stock like Cadence Design Systems, many investors are the most familiar with Fundamental Analysis — looking at a company's balance sheet, earnings, revenues, and what's happening in that company's underlying business. Investors who use Fundamental Analysis to identify good stocks to buy or sell can also benefit from CDNS Technical Analysis to help find a good entry or exit point. Technical Analysis is blind to the fundamentals and looks only at the trading data for CDNS stock — the real life supply and demand for the stock over time — and examines that data in different ways. One of these ways is called the Relative Strength Index, or RSI. This popular indicator, originally developed in the 1970's by J. Welles Wilder, looks at a 14-day moving average of a stock's gains on its up days, versus its losses on its down days. The resulting CDNS RSI is a value that measures momentum, oscillating between "oversold" and "overbought" on a scale of zero to 100. A reading below 30 is viewed to be oversold, which a bullish investor could look to as a sign that the selling is in the process of exhausting itself, and look for entry point opportunities. A reading above 70 is viewed to be overbought, which could indicate that a rally in progress is starting to get crowded with buyers. If the rally has been a long one, that could be a sign that a pullback is overdue.