SWKS dominated by bears dragging the market lower throughout the day
Skyworks Solutions Inc. (SWKS) Technical Analysis Report for Feb 14, 2020 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, SWKS finished the week 4.43% higher at 118.99 after losing $3.60 (-2.94%) today, strongly underperforming the Nasdaq 100 (0.29%) ahead of tomorrow's Presidents' Day market holiday. The bears were in full control today, moving the market lower throughout the whole session. Closing below Thursday's low at 121.05, Skyworks Solutions confirmed its breakout through the previous session low after trading up to $2.80 below it intraday.
Daily Candlestick Chart (SWKS as at Feb 14, 2020):
Friday's trading range has been $5.37 (4.37%), that's far above the last trading month's daily average range of $3.34. Weekly volatility is also higher, being way above the market's average weekly trading range. The longer-term, monthly volatility is currently higher than usual for SWKS.
In spite of a strong opening the stock closed below the prior day's open and close, forming a bearish Engulfing Candle. Additionally, one bearish candlestick pattern matches today's price action, the Black Candle.
The share closed back below the 20-day moving average at 119.58. When this moving average was crossed below the last time on January 27th, SWKS actually gained 2.49% on the following trading day.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Among the nine market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bearish Break through SMA 20" stand out. Although it is usually interpreted as bearish, it has actually shown to be bullish for Skyworks Solutions. Out of 153 times, SWKS closed higher 56.21% 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 60.78% with an average market move of 2.25%.