Microchip Technology Inc. is trading in a rising wedge-like pattern on a daily time frame where the price is rejected by an all-time high trendline. However, at the present moment, there are two possibilities: if the price gives a breakdown, then it will drop to the level of $80 and if the price rebounds and gives a breakout, then it will make new highs.
Presently, traders and investors should wait for a proper breakdown or breakout for any further action and avoid fear of missing out (FOMO).
Microchip Technology Inc. witnessed a 15.8% hike in working capital over the past five years. MCHP has impressive growth and fundamentals. However, the revenue and MCHP have generated a revenue of $8.44 Billion and a net income of $2.24 Billion in 2022 with a profit margin 0f 26.52% which was higher than previous years.
Microchip Technology Inc. (MCHP) Stock Technical Analysis
The MCHP price has gone beyond 50 and 200 EMAs, which suggests that the price is in a bullish trend. If the buyers sustain the pressure, the stock’s value may grow even further in the forthcoming week. The bulls are not in the mood to give power to bears right now.
The MACD indicator also indicates a positive trend. The MACD line at 2.55 and signal line at 2.32 are above the zero line suggesting that the MACD is in positive territory and is giving bullish signals.
The current value of RSI is 57.92 points. The 14 SMA line is currently close to the median line at around around 61.44 points which signals neutrality in the market. However, as the price is heading toward the median line, we cannot say the exact sentiment.
Volume Analysis
The stock’s average trading volume for the last 3 months is 4.9 Million and for the last 10 days, the figure is 4.32 Million.
Summary
Based on the price action, it seems that a price break of its primary trendline resistance level may lead to further price highs in the upcoming days. However, in the present situation, traders and investors should wait for a proper breakdown or breakout for any further action and avoid FOMO. MCHP price chart shows indecisiveness in the short term. The EMAs, the RSI, and the MACD are positive on the stock. Microchip Technology’s price action is likely to attract investors.
Technical Levels:
Support – The current support levels are $ 85.89 and $81.36.
Resistance -The current resistance levels are $90 and 91.32.
Disclaimer
The research given in this article is for informative and educational use only. Do not take this information as a financial or trading recommendation. Trading and investing have financial risks. Before creating any investment or trading decision, please consider your risk profile and circumstances.
Andrew is a blockchain developer who developed his interest in cryptocurrencies while his post-graduation. He is a keen observer of details and shares his passion for writing along with being a developer. His backend knowledge about blockchain helps him give a unique perspective to his writing
Source: https://www.thecoinrepublic.com/2023/07/07/microchip-technology-inc-strong-fundamentals-fluctuations/