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

By James Quinn

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 $50.04 and $50.72 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 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.

In the past 52 weeks, Microchip Technology share prices have been bracketed by a low of $28.92 and a high of $53.17 and are now at $50.59, 75% above that low price. Over the last five market days, the 200-day moving average (MA) has gone up 0.2% while the 50-day MA has advanced 1.0%.

Potential upside of 4.0% exists for Microchip Technology, based on a current level of $50.59 and analysts' average consensus price target of $52.64. 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 is monitoring the recent change of momentum in Microchip Technology. Please refer to our Company Overview for the results of our proprietary technical indicators that have been scanning shares of Microchip Technology in search of a potential trend change.

Keywords: bearish inside day candle microchip technology

Ticker(s): MCHP