Skyworks Solutions Inc (NASDAQ: SWKS)

Skyworks Solutions, Inc., together with its subsidiaries, provides analog semiconductors worldwide. Its product portfolio includes amplifiers, attenuators, battery chargers, circulators, DC/DC converters, demodulators, detectors, diodes, directional couplers, front-end modules, hybrids, infrastructure radio frequency subsystems, isolators, LED drivers, mixers, modulators, optocouplers, optoisolators, phase shifters, phase locked loops/synthesizers/VCOs, power dividers/combiners, power management devices, receivers, switches, voltage regulators, and technical ceramics. The company also offers MIS silicon chip capacitors and transceivers. It provides products for supporting automotive, broadband, cellular infrastructure, energy management, GPS, industrial, medical, military, wireless networking, smartphone, and tablet applications.

Take a look at the 1-year chart of SWKS (Nasdaq: SWKS) below with my added notations:

1-year chart of SWKS (Nasdaq: SWKS)

SWKS has been trending solidly higher since its bottom in late October. Starting in April, the stock has commonly found support on the increments of $5 (blue). For example, $35 acted as support in March. Then, $40 was support in April and May. There was support at $45 in June, and $50 in July. So, identifying this tendency should help when it comes to identifying when to enter a trade on SKWS.

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The Tale of the Tape: SWKS is currently trading above the $55 level. A long position could be entered at $55 or on a break above $60 with a stop placed below the level of entry. If SWKS breaks below $55, another long play could be made at $50.

Would you like assistance in making your TBS trades? If so, email me at Christian@yolopub.com and let’s talk about working together one on one!

Before making any trading decision, decide which side of the trade you believe gives you the highest probability of success. Do you prefer the short side of the market, long side, or do you want to be in the market at all? If you haven’t thought about it, review the overall indices themselves. For example, take a look at the S&P 500. Is it trending higher or lower? Has it recently broken through a key resistance or support level? Making these decisions ahead of time will help you decide which side of the trade you believe gives you the best opportunities.

No matter what your strategy or when you decide to enter, always remember to use protective stops and you’ll be around for the next trade. Capital preservation is always key!

Good luck!

Christian Tharp, CMT

Follow me on Twitter: @cmtstockcoach