Strong performance by the semiconductor group is a great sign of health for markets, and Skyworks Solutions (SWKS) is one of the best performing names in the group. After a nice consolidation, it appears ready for a breakout.
After reaching all-time highs in late March (at which point the stock was up about 45% YTD), it was time for a little “cooling off” period. Volume trends came in as the stock worked sideways, within a set range but higher than the huge volume day (circled). Late last week, the MACD flashed a buy signal on some decent turnover. The momentum indicators are now overbought, which is not necessarily a sell signal.
The stock’s action on May 18 is both constructive and notable, as the breakout puts Skyworks in record territory once again. We like seeing a breakout on higher volume – this tells us that institutions are buying into the name. In fact, we see the stock above the upper bollinger band, possibly setting us up for a “fat tail” trade if we have a couple more higher closes.
Of interest is the trend line, which is still intact. This tells us that, while we could see a pullback soon, there is certainly more upside to be seen. In the Explosive Options service, we added the June 100 call position to our portfolio.
Skyworks Solutions Chart Analysis
Take a deeper dive into the chart action and learn how to read the technicals as I walk you through Skyworks Solutions (Nasdaq: SWKS) and my analysis as I mark up our chart of the week.
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About Skyworks Solutions
Skyworks Solutions, Inc., together with its subsidiaries, designs, develops, manufactures, and markets analog and mixed signal semiconductors worldwide. Its product portfolio includes amplifiers, attenuators, battery chargers, circulators, DC/DC converters, demodulators, detectors, diodes, directional couplers, filters, front-end modules, hybrids, infrastructure radio frequency subsystems, isolators, LED drivers, mixers, modulators, optocouplers, optoisolators, phase shifters, phase locked loops/synthesizers/VCOs, power dividers/combiners, power management devices, receivers, switches, technical ceramics, and voltage regulators. The company also offers MIS silicon chip capacitors and transceivers. It provides its products for supporting automotive, broadband, wireless infrastructure, energy management, GPS, industrial, medical, military, networking, smartphone, and tablet applications. The company sells its products directly, as well as through independent manufacturers representatives and distribution partners. Skyworks Solutions, Inc. was founded in 1962 and is headquartered in Woburn, Massachusetts.