Synopsys Stock: May Not Be The Time To Initiate New Long Positions
Synopsys, Inc. SNPS | 0.00 |
Synopsys (SNPS) is currently in Phase 10 of its 18-phase Adhishthana Cycle, and the monthly structure suggests a peak may already be in place. If that holds true, the upcoming phases could lean bearish. Let's break down the setup.
Synopsys's Cycle So Far
From Phase 9, Synopsys rallied sharply, gaining nearly ~223%, driven by what the Adhishthana Principles define as the “Supreme Move” phase. The principles state that Phase 9 often produces significant breakout rallies when a proper Cakra (a cyclical consolidation curve formed from Phases 4 to 8) has been built.
This rally in Synopsys also initiated the Adhishthana Himalayan Formation, a powerful ascent that extends into Phase 10 & at times Phase 11. However, the stock is now showing signs that this ascent may have come to an end.
As explained in my book Adhishthana: The Principles That Govern Wealth, Time & Tragedy,
"The 18th interval is expected to be the level of peak formation; if not, then the 23rd interval. If this phase concludes without forming the peak, it is anticipated to occur in the following phases."
In the case of Synopsys, the stock peaked exactly at the 18th bar of its Phase 10, and has already corrected by ~20% since reaching a high of $629.38.
What's Next for Synopsys?
Phase 10 concludes on August 2, 2026, and it appears unlikely that SNPS will reclaim its previous high within this phase. If the peak truly formed at the 18th bar, then the descent of the Adhishthana Himalayan formation has begun, a descent that will span Phase 11, which starts out from August 3, 2026, to March 2, 2031.
On the weekly chart, the outlook doesn't improve. The stock has just entered Phase 9 on the weekly timeframe, a phase normally associated with a powerful breakout. However, a critical issue arises: the cakra built between Phases 4–8 on the weekly chart was not successful. Instead of breaking above it, Synopsys is now trading below the lower band, indicating a failed structure and potential underperformance in upcoming weeks.
Investor Takeaway
For prospective investors, now may not be the time to initiate new long positions. The stock appears to be entering a corrective phase that could persist for multiple years.
Current levels don't align with value-based entry points, and a wait-and-watch approach is advisable until the descent of the Himalayan formation is completed. For existing longs, it may be prudent to deploy hedges until the next clear accumulation window arrives.
