The equity is trading near the 40-day moving average
Skyworks Solutions Inc (NASDAQ:SWKS) is down 1.5% to trade at $115.65 at last check. This pullback placed the equity near a historically bullish trendline, though, which presents traders with an interesting entry point.
Specfically, SWKS stock just came within one standard deviation of its 40-day moving average. One month after the last four pullbacks to this trendline the stock was higher, and averaged a solid 8% gain, according to Schaeffer's Senior Quantitative Analyst Rocky White.
A similar move from its current perch would put Skyworks stock above $124, and past a short-term ceiling at the $118 level. It would also help the security put a dent in its 14.2% year-over-year deficit, and add to its 26.4% year-to-date lead.
An unwinding of analysts' pessimism could also be a boon for Skyworks Solutions stock. While 11 covering brokerages rate SWKS a "buy" or better, 10 still recommend a "hold" or worse.
Speculating with options could be the right way to go. The security's Schaeffer's Volatility Index (SVI) of 29% ranks in the lowest percentile of annual readings, and implies options traders are pricing in low volatility expectations at the moment.