In a column this week, Jim Cramer noted semiconductors like Skyworks Solutions (SWKS) . We last checked in on SWKS on July 28 and wrote that "The charts of SWKS are bullish. Traders should trade SWKS from the long side at current levels risking a close below $125. The $163 area and then the round number of $200 are our first price targets for the months ahead."
SWKS has rallied to $154 and has not declined below $125, so our long recommendation is still in play. Prices recently dipped with the broad market weakness, so let's see if anything has changed.
In this updated daily bar chart of SWKS, below, we can see that prices recently pulled back with the weakness in the broad market. SWKS dipped below the rising 50-day moving average line and has since rallied back above it. The On-Balance-Volume (OBV) line has moved higher from March, but shows more of a sideways trend in recent weeks. The Moving Average Convergence Divergence (MACD) oscillator shows a peak in June and a decline down to the zero line now. SWKS could decline below the zero for a sell-signal or reverse to the upside for a new buy signal. We'll have to watch this closely.