SWKS pushes through Monday's high
Skyworks Solutions Inc. (SWKS) Technical Analysis Report for Jun 30, 2020 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, SWKS ended the month 7.86% higher at 127.86 after gaining $1.86 (1.48%) today, slightly underperforming the Nasdaq 100 (1.96%). Closing above Monday's high at 126.40, the stock confirmed its breakout through the prior session high after trading up to $1.99 above it intraday.
Daily Candlestick Chart (SWKS as at Jun 30, 2020):
Tuesday's trading range has been $2.97 (2.36%), that's below the last trading month's daily average range of $4.13. Weekly volatility is also lower, being way below the market's average weekly trading range. The longer-term, monthly volatility is currently strongly lower than usual for SWKS.
Despite a weak opening the share managed to close above the previous day's open and close, forming a bullish Engulfing Candle. The last time this candlestick pattern showed up on June 15th, SWKS gained 0.90% on the following trading day. Additionally, one bullish candlestick pattern matches today's price action, the White Candle.
Prices are trading close to the key technical support level at 125.32 (S1).
Though Skyworks Solutions is currently in a short-term downtrend, this could just be a correction, as both the medium and long-term trends are still bullish.
Among the seven market conditions that our pattern recognition engine identified today, the statistics for the Technical Indicators based market condition "RSI(2) above 80" stand out. Although it is usually interpreted as bearish, it has actually shown to be bullish for Skyworks Solutions. Out of 299 times, SWKS closed higher 51.51% 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 58.86% with an average market move of 1.33%.