Skyworks Solutions (SWKS) has continued to pull back since our last review, when we suggested that SWKS may have made a "false breakout." In the past week SWKS has been holding around the prior resistance zone of $110 or the highs of June and September. Prices are now in a sort of purgatory waiting for the next $5 move up or down to clarify the situation.
Let's check the charts and indicators one more time to see if we have gotten too close to the trees.
In this daily bar chart of SWKS, below, we can see that prices are above the rising 50-day moving average line as well as the rising 200-day line. The On-Balance-Volume (OBV) made a slight new high with the price action earlier this month and has only moved slightly lower recently. The daily Moving Average Convergence Divergence (MACD) oscillator has turned down from above the zero line for a take profits sell signal.
In this weekly bar chart of SWKS, below, we can see that prices are above the rising 40-week moving average line, telling us that the major trend is still up despite the short-term daily "jiggles." The weekly OBV line remains neutral and is a disappointment to the bulls. The MACD oscillator in the bottom panel looks like it has crossed to the upside for a fresh outright go long signal.
In this Point and Figure chart of SWKS, below, we can see that the recent trade at $107.61 was a new low for the move down. A potential price target of $102 is shown but we can see a large band of support from $106.54 and down.
Bottom line: If we pay more attention to the longer-term trend of SWKS, we want to stay long. If we focus on the short-term too much we might talk ourselves out of a good position. Until SWKS makes up its mind I would use a $99 stop loss order to control the risk.