Growth Seeker holding Skyworks Solutions (SWKS) peaked around $110 in June and has worked lower into the $80-$70 area in recent weeks.
While we are seeing a bullish divergence between the price action and the momentum study (M=V-vx) in August and October, we have not seen a reversal in the volume pattern.
With the downtrend still intact above, and volume heavier on days when SWKS closes lower, we see no technical reason to probe the long side just yet.
This longer-term weekly chart of SWKS, above, illustrates why SWKS may not bottom at current levels. In this chart, we can see that SWKS broke its 40-week, or 200-day, moving average and rallies to the underside of the moving average have failed, around $90.
On this weekly timeframe, we find no bullish divergences yet. Also, reading the chart from right to left, we see next possible support just below $60.
This does not mean that we anticipate SWKS to decline to around $60 as buying interest could develop between current levels and $60 at any time.
For now, keep your powder dry.