We've asked our friend Jim Robinson of profittrading.com to provide his expert analysis of charts to our readers. Each week he'll be be analyzing a different chart using the Trade Triangles and his experience.
Today he is going to take a look at the technical picture of Skyworks Solutions Inc. (SWKS).
This week let's take a look at SWKS which is an absolutely beautiful chart,as the price and volume action is all classic.
SWKS made a double bottom and then traded sideways since the middle of December in a Triangle chart pattern.
Today's action looks to be a break away gap.
Break away gap's are one of the most powerful signs there is, that a stock has made a bottom and will head sharply higher.
As with everything in trading, even though this is an extremely bullish chart, we still have to be cautious, and remember that nothing works all the time.
So odds are definitely with the upside, but if we would decide to buy SWKS, we still need to follow our own personal rules to enter the stock and use good money management.
I've mentioned on past Chart's to Watch that the MarketClub Trade Triangles will often put in a signal at opportune times, and today's monthly green Trade Triangle couldn't have come in at a more perfect place on this chart.
I highly recommend SWKS as a Chart to Watch, and I hope you enjoyed the write up !
Thanks,
Jim Robinson
Profit Trading.com
The double bottom bottomed in the 19-20 range, breakout was near 24. The difference is 4-5, add that to the breakout price, hence target around 28. Happy trading!
What do you think the upside target would be? Thank you.
I do find it a bit interesting that this particular article about being on watch for a potential 'breakaway gap' for SWKS was preceeded by such an event taking place 1 day prior to publication & provision to INO.com readers.