Watch These Skyworks Solutions Price Levels as Stock Dives on Weak Mobile Revenue Outlook

Skyworks Solutions (SWKS) stock plummeted more than 24% Thursday after the analogue chipmaker projected a slowdown in its mobile business revenue. The company also acknowledged that it’s largest customer, Apple (AAPL), was no longer exclusively purchasing certain components from it.

Separately, Skyworks announced a leadership change with former Intel (INTC) executive Philip Brace replacing former CEO Liam Griffin.

Skyworks has seen its shares tumble more than 15% over the past year, in part, weighed down by excess chip inventory caused by slower-than-expected uptake of electric cars.

Given the stock’s expected sharp move lower, we break down the technicals on Skyworks monthly chart to identify longer-term price levels worth watching out for.

Trading Range Breakdown

Skyworks shares have oscillated within an orderly trading range since October 2022 to establish clearly defined support and resistance levels.

However, that extended rangebound period ended on Thursday, with the stock gapped decisively below the pattern’s lower trendline after the company’s disappointing mobile sales forecast.

Let’s identify longer-term major support levels that investors may be watching and also point out key overhead areas where the shares could experience selling pressure during potential countertrend rallies.

Major Support Levels to Watch

The first major lower level to watch sits around $62. While the stock came close to falling below this price on Thursday, investors should monitor if the bulls can defend the area on the close, given it’s a location that lies near prominent troughs that formed on the chart in June 2016 and January 2019.

With little in the way of nearby support below this important technical level, a decisive breakdown here could see the shares drop to the $36 area. This region on the chart, which sits nearly 60% below Wednesday’s closing price, would likely attract buying interest near the notable February 2011 swing high.

Key Overhead Areas to Monitor

During countertrend rallies, investors should initially monitor the $74 area. The shares could meet resistance in the region near the closely watched 200-period moving average, which currently closely aligns with a series of price action on the chart between August 2015 and October 2019.

Finally, buying above this level would set the stage for a retest of the key $86 area, a location on the chart likely to encounter significant resistance near the trading range’s lower trendline.

The comments, opinions, and analyses expressed on Investopedia are for informational purposes only. Read our warranty and liability disclaimer for more info.

As of the date this article was written, the author does not own any of the above securities.