SWKS closes above its opening price after recovering from early selling pressure
Skyworks Solutions Inc. (SWKS) Technical Analysis Report for May 22, 2020 | by Techniquant Editorial Team
SWKS ended the week 10.17% higher at 117.02 after gaining $2.89 (2.53%) today, significantly outperforming the Nasdaq 100 (0.38%) ahead of tomorrow's Memorial Day market holiday. Trading up to $1.69 lower after the open, the market managed to reverse during the session as bulls took control ending the day above its opening price. Closing within the previous day's range, prices failed to decisively move beyond the prior day's trading range.
Daily Candlestick Chart (SWKS as at May 22, 2020):
Friday's trading range has been $4.58 (3.99%), that's above the last trading month's daily average range of $3.84. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for SWKS. Prices continued to consolidate within a tight trading range between 113.14 and 118.18 where it has been caught now for the last three trading days.
Skyworks Solutions found buyers again today around 113.14 for the third trading day in a row after having found demand at 113.92 in the previous session and at 113.62 two days ago. The last time this happened on April 13th, SWKS gained 5.77% on the following trading day.
Although still in a long-term downtrend, the short and medium-term trends both turned bullish already.
Buying might accelerate should prices move above the close-by swing high at 118.18 where further buy stops could get triggered.
Among the seven market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Low close to prior two Lows" stand out. Its common bullish interpretation has been confirmed for Skyworks Solutions. Out of 111 times, SWKS closed higher 58.56% of the time on the next trading day after the market condition occurred.