For his "Executive Decision" segment of Mad Money Tuesday night, Jim Cramer spoke with Liam Griffin, CEO of Skyworks Solutions (SWKS) , the semiconductor maker on the front lines of the coming 5G wireless rollout.
Griffin said that while our networks have performed pretty well in our new stay-at-home world, there's still a long way to go.
When asked about the timing of 5G, Griffin explained that the technology isn't here yet. The rollout has been disrupted due to the pandemic.
Regarding the Covid-19 outbreak, Griffin said that Skyworks Solutions operations in China are returning to normal.
Let's check and see if the charts are returning to an uptrend.
In this daily Japanese candlestick chart of SWKS, below, we can see that in just two months prices gave back the entire rally from the May/June lows. The slope of the 50-day moving average turned negative and the slope of the 200-day moving average line turned flat.
Trading volume has increased in recent weeks but the On-Balance-Volume (OBV) line turned down only for January and February.The OBV line has been showing improvement this month.
The Moving Average Convergence Divergence (MACD) oscillator is crossing to the upside from below the zero line for a cover shorts buy signal.
In this weekly Japanese candlestick chart of SWKS, below, we can see that prices have made a big decline but potential support areas from late 2018 remain intact. Prices are below the 40-week moving average line which is now cresting.
The weekly OBV line turned down, but the 12-week price momentum study shows that momentum has slowed from the prior week and that dovetails with the long-legged doji pattern last week.
In this daily Point and Figure chart of SWKS, below, we can see the decline and some recent accumulation (buying). The chart is projecting a potential upside price target around $105. It's a start.
Bottom line strategy: Aggressive traders could look to buy available weakness over the next few days. Risk a close below $74 for now. The $105 area is our first upside price target.