If you follow the West road out of the main city you will come across the main questline NPC Neramo. He is standing next to his tent with dwemer artifacts. Behind the tent, towards the water, is where you’ll find this skyshard.
Skyshard is on the cliff above the waterline. You will come across it if you exit the main city via the West gate and if you follow the road.
NPC Neramo’s tent, behind which is the skyshard