Skyworks Solutions (SWKS) rallied from a February low, but the rebound stalled out at resistance and buying interest has not been aggressive. More work is needed before this stock is ready for active duty again.
In this daily chart of SWKS, above, you can see the bounce from the February low and the resistance around $80 and the declining 200-day simple moving average line. Failing at the bottom end of a resistance zone and the underside of the falling 200-day line means that SWKS is not ready for a sustained move to the upside. The On-Balance-Volume (OBV) line only improved for about six weeks from the February low. The current decline and the momentum study are not diverging, so we don't have a setup conducive to a turnaround. SWKS could drift down to retest the $60 to $55 area.
In this weekly chart, above, we can see the declining 40-week moving average and how it has capped rallies in the past year. In addition we can see the softly declining OBV line and the bearishly configured Moving Average Convergence Divergence (MACD) oscillator. A close below $60 on SWKS could precipitate a deeper decline to $50 in the weeks ahead. Buyers of SWKS should keep their powder dry.