Skyworks: Momentum Chip Stock Pulls Back to Old High

SWKS has been flying on strong demand for smart phones and hopes of a big 5G buildout. Now it's pulled back to a level where traders might want to take a look.

SWKS broke out to new record highs in December, above the $115 zone where it peaked in November 2017 and March 2018. As often happens, it was a case of "buy the rumor and sell the news." Earnings last Thursday were good, as expected, and traders responded by taking profits.

Several analysts raised their price targets, including Raymond James, Needham, Canaccord Genuity, Citi and Craig-Hallum.

SWKS continued its slide Monday as coronavirus fears dragged on the broader market. But now that the stock is trying to stabilize at the old resistance zone, some momentum players might get interested. It's also making a slightly higher low than its earlier pivot on January 6. Traders may want to use that same area for risk management.

SWKS could also move on Apple's earnings report this afternoon because it's an iPhone supplier.