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

By James Quinn

SmarTrend's candlestick scanner has spotted a possible bearish inside day candle pattern in Microchip Tech (NASDAQ:MCHP) based on the price action in the company's shares. Yesterday's price range of $87.13 and $88.99 is within the prior day'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 Tech may want to consider a possible hedge in the event a pullback occurs. Look for confirmation in the next few trading days.

Over the past year, Microchip Tech has traded in a range of $53.15 to $112.47 and closed yesterday at $88.30, 66% above that low. In the last five trading sessions, the 50-day moving average (MA) has fallen 0.3% while the 200-day MA has slid 0.2%.

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 and mixed-signal, power management, and thermal management products.

Microchip Tech (NASDAQ:MCHP) has potential upside of 26.3% based on a current price of $88.30 and analysts' consensus price target of $111.56. The stock should hit resistance at its 200-day moving average (MA) of $92.00, as well as support at its 50-day MA of $76.85.

SmarTrend is tracking the current trend status for Microchip Tech and will alert subscribers who have MCHP in their portfolio or watchlist when shares have changed trend direction.

Keywords: bearish am inside day candle microchip tech

Ticker(s): MCHP