Since the beginning of the bull market in 2009, Synopsys Inc. (SNPS) is a stock that has perform in line with the Nasdaq Composite Index until early 2016. Since February 2016, SNPS has accelerated well outside of the historical trend for the stock. While there are many fundamental reasons for excessive gains in the last two years, the gains are still excessive and therefore should, at minimum, revert to the mean.
The challenge with reversion to the mean is that the stock price will likely overshoot on the downside. With this in mind we have provided the Speed Resistance Lines indicating the conservative, mid range, and extreme price targets below.