Don't Ignore This Chart!

Apple Breakout Could Lift these Two Suppliers


Apple (AAPL) broke out of a pennant formation with a surge on Friday and this breakout could bode well for Qorvo (QRVO) and Skyworks (SKWS).

The first chart shows Qorvo surging over 20% and then stalling with a contracting consolidation. This is a pennant and it is a bullish continuation pattern. A breakout would signal a continuation higher and open the door to new highs.

The indicator window shows the Correlation Coefficient so we can compare Qorvo with Apple. There were two dips into negative territory, but these two are positively correlated for the most part, especially since March 2018. Notice that the 250-day SMA of the Correlation Coefficient is currently at +.56.  

The second chart shows Skyworks (SKWS) with an 18% surge and a small falling flag. The stock broke out of the flag with a surge on Friday and this signals a continuation higher. Chartists can now use the flag lows to mark first support. A close below 98 would call for a re-evaluation.

The indicator window shows the Correlation Coefficient spending most of its time in positive territory and the 250-day SMA near +.58.

On Trend - Available to All

On Trend is my show on StockCharts TV. Available to everyone, this show airs every Tuesday at 10:30 AM and is then archived on our Youtube Channel. StockChartsTV and the video archives are available to everyone. 

Highlights from On Trend for Tuesday, May 29th

  • What do Trendlines Actually Measure
  • Measuring Risk On/Off (Dollar, Gold, Yen, Treasuries)
  • Euro Breaks Down and Yen Bounces
  • Gold Becomes Oversold within an Uptrend
  • Italy and Spain Lead Europe Lower (international index symbols)
  • QQQ, Top QQQ Stocks, XLF and XLV

Plan Your Trade and Trade Your Plan.

- Arthur Hill, CMT

Senior Technical Analyst,

Book: Define the Trend and Trade the Trend
Twitter: Follow @ArthurHill

Arthur Hill
About the author: , CMT, is the Chief Technical Strategist at Focusing predominantly on US equities and ETFs, his systematic approach of identifying trend, finding signals within the trend, and setting key price levels has made him an esteemed market technician. Arthur has written articles for numerous financial publications including Barrons and Stocks & Commodities Magazine. In addition to his Chartered Market Technician (CMT) designation, he holds an MBA from the Cass Business School at City University in London. Learn More
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