SKWS Harsh Decline may lead to possible quick correctionRemember it is important to wait for the next candle to confirm. This is a bullish Hammer after a downtrend from a harsh pullback in asian chip stocks this week. Although Vortex indicator has confirmed a larger bearish move is still likely, as there is no confirmation that this decline is over, it is very possible that speculators will continue to aggressively buy this dip pushing the price back towards $100.
Tomorrow Bullish scenario: (move towards $96.71), if SKWS opens above this may act as support
Tomorrow Bearish scenario: (move towards $89.92) 50 Day EMA may provide signifcant support if further declines
With a PE of about $33, skyworks is currently overvalued, HOWEVER, SWKS is projected to have a YoY growth rate of 50% in the period ending 12/31/2015. That would merit, if PEG = 1 at that future date, a possible stock value of $164. DISCLOSURE: i OWN SHARES OF SWKS
