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  1. Home
  2. / Investing

Microchip Technology Is Booting Up

Here's a strategy for MCHP as the charts improve.
By BRUCE KAMICH
Jan 12, 2023 | 02:16 PM EST
Stocks quotes in this article: MCHP

Shares of Microchip Technology ( MCHP)  are shaping up nicely on the charts. The company manufactures various types of integrated circuits.
 
Let's check the charts.  
 
In this daily bar chart of MCHP, below, I see a pretty clear-looking base pattern with a neckline across the $80 level. A strong close above $80 on increased volume should be taken as a buy signal. Prices trade above the rising 50-day moving average line and above the bottoming 200-day line too. The daily On-Balance-Volume (OBV) line shows a rising pattern from May and confirms the prices gains this past year. The Moving Average Convergence Divergence (MACD) oscillator is ready to cross above the zero-line for a new outright-buy signal.
 
 
 
 
In this weekly Japanese candlestick chart of MCHP, below, I see a promising looking picture. Prices have made a "normal correction" and have started to restart a longer-term uptrend. MCHP is above the flat 40-week moving average line. The weekly OBV line shows improvement from October. The MACD oscillator is bullish. 
 
 
 
In this daily Point and Figure chart of MCHP, below, I can see a potential upside price target in the $89 area. A trade at $80.63 should refresh the uptrend. 
 
 
 
In this weekly Point and Figure chart of MCHP, below, I can see a downside price target in the $57 area. A trade at $80 or higher should turn this chart bullish. 
 
 
 
Bottom line strategy: This company may be giving up profits, but traders should wait for an upside breakout above $80 before going long MCHP. Risk to $72.
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TAGS: Investing | Technical Analysis | Technology | Technology Hardware & Equipment

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