MCHP: Semiconductor Stock Topped, Now Look for Strong SupportMicrochip Technologies stock, in the Semiconductor Industry, has a top that completed in early September, seen best on the weekly chart. This is a common top right now. I see it in many topping stocks. The trading range breaks to the downside, usually on company news. The question now is WHERE will it find sufficient support to commence a bottom? The answer lies within the technical and fundamental support levels. The stock is in a bounce to rebound price action over the past couple of weeks. This is not at a strong support level. The support for MCHP stock for a final low is the highs of 2016. This also coincides nicely with the typical bottoming location based on the percentage of loss from the all-time high. About a 50% loss is where many stocks are currently finding support and where some Dark Pool Buy Zones are beginning. These Buy Zones are at the earliest of stages and are not fully developed yet. This provides 2 important analyses for trading decisions:
1. Where you need to cease selling short entirely.
2. Where you need to start watching for a bottoming Dark Pool Buy Zone formation.
When you learn to do this type of analysis during a bear market, particularly a trading range bear, then you will be far ahead of the crowd.
Keep in mind that many stocks WILL dig deeply into the highs of the 2016 support levels. The highs are just where you need to stop selling short. It is not necessarily the final, final destination of the stock price before a bottom commences.
4MCHP trade ideas
MCHP Break over 100 should be purchasedTechnicals
Positive on all time frames
Has broken out above historical high
Has broken and closed above psychological $100 level
This was done in mild volume, so volume confirmation would be welcome
Trade setup
Buy the breakout in half size
Stop loss at 92 and 88
Target 110
Expected timeline for this trade 7 weeks
Please mind macro numbers (CPI today) and only trade in the direction of the market.
"Are Bears Ready To Take Microchip Technology Down?" - PossiblyMicrochip Technology Inc. (NASDAQ: MCHP) is at a Critical Make-Or-Break Point right now which is around 92 Zone . If it continues to lose momentum and manage to close decisively below this zone on 1 Hour Basis, then we may see a good Down Side as per TTC Breakout Formation .
For Short-term targets, Trader should eye on 90.70 Zone . Then 89.30 is the next support. For Swing Traders, 85.50 Zone is Very Critical. Below which we can see a good amount of selling.
Microchip Technology is an American manufacturer of microcontroller, memory and analog semiconductors. Among its chief competitors are Analog Devices, Infineon, Maxim Integrated Products, NXP Semiconductors (previously Philips and purchased Freescale), Renesas Electronics, STMicroelectronics, and Texas Instruments.
$mchp breakout lookout higher time frame showing change in market structure after pulling back and in defined uptrend
mid time frame shows rising moving average and positive market structure change forming a base before possible breakout
lower time frame is in alignment with higher time frames with positive momentum and volume
first target is resistance of 83.0x area and next level to 84.0x area
Microchip Technology ($MCHP) Earnings Beat?Thinking about buying this stock because of its earnings coming up aftermarket tomorrow. The last three quarters they have killed their earnings with a short term 7% gain which is what I would be looking for with this trade. Not quite sure about how well things will go because of AMD's earnings but with a few big players going tomorrow in the semiconductor industry, it makes for an interesting afternoon tomorrow. Any response would be appreciated :D (First chart on here sorry for the shitty arrows)
1 of the best in tech stocks but could face strong wallUp 24% from Feb low after a new lower low but the breakout above Feb high is encouraging and looks strong but facing the descending resistance line now close above it will suggest a possible 52wkh next few weeks. If it fails to push higher it qualifies buy in the dips as long as price stays above Feb high at and around $44. Trade less and save more!