Skyworks Solutions Inc. (SWKS) has been a difficult stock to trade the past 12 months, with sharp up and down swings. Prices made a sharp move lower Friday, so let's review the charts and indicators to see what may come next for Skyworks, which earns a mention in Jim Cramer's opening piece today.
In this daily bar chart of SWKS, below, we can see twin peaks in prices in November and March. Prices broke down below the December/January lows in late April but rallied back to the underside of the declining 200-day moving average line, where the rally failed in June. Prices briefly closed above the 200-day line this month, but Friday's big decline quickly changed the outlook. SWKS closed below the rising 50-day average line and is close to making a new low for the recent move down. Both the On-Balance-Volume (OBV) line and the Moving Average Convergence Divergence (MACD) oscillator quickly reacted lower.
In this weekly bar chart of SWKS, below, we can see a number of bearish clues. Prices are below the declining 40-week moving average line. The weekly OBV has been rolling over the past two to three months, signaling more aggressive selling. The weekly MACD oscillator has been below the zero line since April -- another bearish signal.
In this Point and Figure chart of SWKS, below, there is a downside price target of $91 indicated.
Bottom line: I do not find any technical reasons to go long SWKS. A decline to $91 or even lower looks like the most likely course in the days and weeks ahead.