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Possible Bearish Inside Day Candle Pattern Detected for Microchip Technology (NASDAQ:MCHP)

By Shiri Gupta

SmarTrend's candlestick scanner has spotted a possible bearish inside day candle pattern in Microchip Technology (NASDAQ:MCHP) based on the price action in the company's shares. Today's price range of $80.30 and $81.22 is within yesterday's high and low of the day. This trading action often signifies indecision by bulls and bears to drive prices higher or lower and often implies a possible change in trend. Owners of Microchip Technology may want to consider a possible hedge in the event a pullback occurs. Look for confirmation in the next few trading days.

Microchip Technology share prices have moved between a 52-week high of $81.46 and a 52-week low of $28.92 and are now trading 179% above that low price at $80.71 per share. The 200-day and 50-day moving averages have moved 0.20% higher and 0.97% higher over the past week, respectively.

Microchip Technology Incorporated designs, manufactures, and markets microcontrollers, related mixed-signal and memory products, and application development systems for high-volume embedded control applications. The Company also designs, develops, and markets linear/mixed-signal, power management, and thermal management products.

Potential upside of 4.4% exists for Microchip Technology, based on a current level of $80.71 and analysts' average consensus price target of $84.27. The stock should discover initial support at its 50-day moving average (MA) of $48.13 and subsequent support at its 200-day MA of $45.36.

SmarTrend recommended that subscribers consider buying shares of Microchip Technology on January 23rd, 2017 as our proprietary SmarTrend analytics indicated a new Uptrend was in progress when shares hit $66.79. Since that recommendation, shares of Microchip Technology have risen 22.2%. We continue to monitor MCHP for any potential shift so investors can protect gains and will alert SmarTrend subscribers immediately.

Keywords: bearish inside day candle microchip technology

Ticker(s): MCHP