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SKYWORKS SOLUTIONS INC is showing promising signs of setting up for a breakout.

By Mill Chart

Last update: Jul 9, 2024

Our stock screener has identified SKYWORKS SOLUTIONS INC (NASDAQ:SWKS) as a potential breakout candidate. This technical breakout setup pattern occurs when the stock consolidates after a strong uptrend. While the actual breakout is uncertain, it may be worth keeping an eye on NASDAQ:SWKS.

SWKS Daily chart on 2024-07-09

Technical analysis of NASDAQ:SWKS

Every day, ChartMill assigns a Technical Rating to each stock, providing a score ranging from 0 to 10. This rating is determined by evaluating various technical indicators and properties.

We assign a technical rating of 7 out of 10 to SWKS. This is due to a decent performance in both the short and longer term time frames. Compared to the overall market however, SWKS is a bad performer.

  • The long and short term trends are both positive. This is looking good!
  • SWKS is currently trading in the upper part of its 52 week range. The S&P500 Index however is currently trading near a new high, so SWKS is lagging the market slightly.
  • SWKS is currently showing a bull flag pattern! A bull flag pattern occurs when prices pull back slightly after a strong rise up. This may be a nice opportunity for an entry.
  • SWKS is an average performer in the Semiconductors & Semiconductor Equipment industry, it outperforms 48% of 107 stocks in the same industry.

Check the latest full technical report of SWKS for a complete technical analysis.

How does the Setup look for NASDAQ:SWKS

Alongside the Technical Rating, ChartMill assigns a Setup Rating to evaluate the consolidation level of a stock. This rating, ranging from 0 to 10, is updated daily and considers various short-term technical indicators. The current setup rating for NASDAQ:SWKS is 9:

Besides having an excellent technical rating, SWKS also presents a decent setup pattern. We see reduced volatility while prices have been consolidating in the most recent period. A pullback is taking place, which may present a nice opportunity for an entry. There is a resistance zone just above the current price starting at 106.92. Right above this resistance zone may be a good entry point. There is a support zone below the current price at 106.06, a Stop Loss order could be placed below this zone. We notice that large players showed an interest for SWKS in the last couple of days, which is a good sign. Very recently a Pocket Pivot signal was observed. This is another positive sign.

How to trade NASDAQ:SWKS?

One way to play this would be to wait for the actual breakout to happen and buy when the stock breaks out above the current consolidation zone. A possible place for a stop loss would be below this zone.

Of course, there are many ways to trade or not trade NASDAQ:SWKS and this article should in no way be interpreted as trading advice. The article is purely based on an automated technical analysis and just points out the technical observations. Always make your own analysis and trade at your own responsibility.

Every day, new breakout setups can be found on ChartMill in our Breakout screener.

Keep in mind

This article should in no way be interpreted as advice. The article is based on the observed metrics at the time of writing, but you should always make your own analysis and trade or invest at your own responsibility.