Yesterday, we looked at the daily price chart for Pinduoduo Inc. noting that the stock had been making a series of 52-week highs recently.
Today’s Chart of the Day is a daily price chart for Skyworks Solutions Inc. (NYSE: SWKS).
Skyworks Solutions, Inc., together with its subsidiaries, designs, develops, manufactures, and markets proprietary semiconductor products — including intellectual property — worldwide. Its product portfolio includes amplifiers, antenna tuners, attenuators, circulators/isolators, DC/DC converters, demodulators, detectors, diodes, directional couplers, diversity receive modules, filters, front-end modules, hybrids, LED drivers, and more.
Now, below is a Daily Price Chart with the 50-Day EMA and 100-Day EMA for Skyworks Solutions Inc.
Back on May 14th, the SWKS 50-Day EMA (blue line) crossed above the 100-Day EMA (red line) indicating SWKS was showing a ‘buy’ signal (circled).
When the 50-Day Exponential Moving Average crosses above the 100-Day Exponential Moving Average, this indicates that the stock’s buying pressure has begun to outweigh the selling pressure signaling a ‘buy’ signal. When the 50-Day EMA crosses below the 100-Day EMA this indicates that the selling pressure has begun to outweigh the buying pressure signaling a ‘sell’ signal.
To break this down into simpler terms:
- 50-Day EMA line above 100-Day EMA = Buy signal
- 50 Day EMA line below 100-Day EMA = Sell signal
If you had purchased SWKS shares when the 50-Day EMA crossed above the 100-Day EMA on May 14 — when the stock was around $108.35 — you’d be up 20.7% by now.
Not a bad profit for just over a month-long hold of a semiconductor equipment company.
Now, as you can see, the 50-Day EMA is still above the 100-Day EMA. That means the bullish trend is still in play!
As long as the 50-Day EMA remains above the 100-Day EMA, the stock is more likely to keep trading at new highs in the coming days and weeks.
We’ll be keeping our eye on this stock as it continues to trend upward.
Editor, Chart Of The Day