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

By Amy Schwartz

SmarTrend's candlestick scanner has spotted a possible bullish inside day candle pattern in Microchip Tech (NASDAQ:MCHP) based on the price action in the company's shares. Yesterday's price range of $108.31 and $108.68 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. Traders and investors interested in shares of Microchip Tech may want to consider an appropriate entry level in the event a reversal to the upside transpires. It is important to look for confirmation.

Microchip Tech has overhead space with shares priced $108.82, or 2.5% below the average consensus analyst price target of $111.56. The stock should find initial support at its 50-day moving average (MA) of $100.34 and further support at its 200-day MA of $93.03.

In the past 52 weeks, Microchip Tech share prices have been bracketed by a low of $73.25 and a high of $112.47 and closed yesterday at $108.82, 49% above that low price. In the last five trading sessions, the 50-day moving average (MA) has climbed 1.0% while the 200-day MA has risen 0.5%.

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.

SmarTrend recommended that subscribers consider buying shares of Microchip Tech on December 6th, 2019 as our proprietary SmarTrend analytics indicated a new Uptrend was in progress when shares hit $98.33. Since that recommendation, shares of Microchip Tech have risen 9.4%. We continue to monitor MCHP for any potential shift so investors can protect gains and will alert SmarTrend subscribers immediately.

Keywords: bullish am inside day candle microchip tech

Ticker(s): MCHP