SWKS ends the day indecisive
Skyworks Solutions Inc. (SWKS) Technical Analysis Report for Oct 12, 2018 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, SWKS finished the week -0.39% lower at 87.21 after gaining $1.95 (2.29%) today, slightly underperforming the Nasdaq 100 (2.77%). Ending the day with an indecisive close, neither buyers nor sellers were able to gain control during the session.
Daily Candlestick Chart (SWKS as at Oct 12, 2018):
Friday's trading range has been $1.70 (1.95%), that's slightly below the last trading month's daily average range of $2.03. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for SWKS.
Two candlestick patterns are matching today's price action, the Takuri Line which is known as bullish pattern and one neutral pattern, the Doji. The last time a Doji showed up on September 5th, SWKS lost -1.21% on the following trading day.
After trading down to 85.91 earlier during the day, Skyworks Solutions bounced off the key technical support level at 86.36 (S1). The failure to close below the support could increase that levels significance as support going forward.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Buying might accelerate should prices move above the close-by swing high at 88.70 where further buy stops could get triggered. With prices trading close to this year's low at 83.05, downside momentum might speed up should the market break out to new lows for the year.
Among the six market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bounced off Technical Support S1" stand out. Its common bullish interpretation has been confirmed for Skyworks Solutions. Out of 405 times, SWKS closed higher 55.56% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the long side has been after 10 trading days, showing a win rate of 59.01% with an average market move of 1.80%.