SWKS pops to highest close ever
Skyworks Solutions Inc. (SWKS) Technical Analysis Report for Jul 31, 2020 | by Techniquant Editorial Team
Moving higher for the 3rd day in a row, SWKS ended the month 13.86% higher at 145.58 after gaining $3.39 (2.38%) today on high volume, outperforming the Nasdaq 100 (1.78%). Today's close at 145.58 marks the highest recorded closing price ever. Trading up to $3.16 lower after the open, the share managed to reverse during the session as bulls took control ending the day above its opening price. The last time this happened on Wednesday, SWKS gained 4.21% on the following trading day. 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 Jul 31, 2020):
Friday's trading range has been $4.58 (3.17%), that's slightly above the last trading month's daily average range of $4.15. Weekly volatility is also higher, being above the market's average weekly trading range. The longer-term, monthly volatility is currently higher than usual for SWKS.
With another close above the upper Bollinger Band, prices are confirming their strong upward momentum in the short-term. A drop back into the Bollinger Band on the next trading day while could signal a potential change in momentum that might lead to a correction back down towards the center of the Bollinger Bands at 134.57.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Among the seven market conditions that our pattern recognition engine identified today, the statistics for the Technical Indicators based market condition "Close above the upper Bollinger Band" stand out. Although it is usually interpreted as bullish, it has actually shown to be bearish for Skyworks Solutions. Out of 165 times, SWKS closed lower 60.61% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the short side has been after five trading days, showing a win rate of 56.36% with an average market move of -0.25%.