A Battle-Tested Chart

With the Dow down more than 200 points as I write this, the semiconductors housed in the SMH ETF are higher by more than 1.3%.

While the chips may eventually buckle under further market pressure, it is worth noting that quite a few individual names in the sector are confirming the early morning outperformance, namely prominent ones like INTC NVDA TXN. 

One of our Members flagged MU, Micron, for its recent rally back above all daily chart moving averages after flirting with a more serious breakdown just a few weeks ago. 

And then we have Skyworks, which essentially went into hibernation back in early-November. 

Sine then, SWKS has been the epitome of "dead money," as the Apple supplier lagged the market and was justly off the radar for many a trader. 

However, over the weekend we looked at the base forming on the SWKS daily chart, updated below, and surmised that if chips caught a fresh sector rotation that we could easily see the name stage a resurgence. 

Going forward, if SWKS can hold back over $105 I would be looking for a long entry to play for a base bottom breakout from what has become a rather battle-tested chart. As I write this morning, SWKS is passing this early selloff's test.