How the price action of Microchip Technology (MCHP) is used to our Advantage

January 25, 2023, 05:45 amET, BY Christie- Contributor| Editor: Thomas H. Kee Jr. (Follow on LinkedIn)

Longer Term Trading Plans for MCHP

• Buy MCHP slightly over 69.14 target n/a stop loss @ 68.94. Details

The technical summary data tells us to buy MCHP near 69.14, but there is no current upside target from the summary table. In this case we should wait until either an update to the summary table has been made (which usually happens at the beginning of every trading day), or until the position has been stopped. The data does tell us to set a stop loss 68.94 to protect against excessive loss in case the stock begins to move against the trade. 69.14 is the first level of support below 75.72, and by rule, any test of support is a buy signal. In this case, if support 69.14 is being tested, a buy signal would exist.

• NONE . Details

NONE .
There are no current resistance levels from the summary table, and therefore there are no Short resistance Plans which tell us to short upon tests of resistance. Resistance levels have broken higher and unless the stock reverses lower and below support levels again short positions look risky.

Swing Trading Plans for MCHP

• Buy MCHP slightly over 77.31, target n/a, Stop Loss @ 77.09 Details

If 77.31 begins to break higher, the technical summary data tells us to buy MCHP just slightly over 77.31, with an upside target of n/a. The data also tells us to set a stop loss @ 77.09 in case the stock turns against the trade. 77.31 is the first level of resistance above 75.72, and by rule, any break above resistance is a buy signal. In this case, 77.31, initial resistance, would be breaking higher, so a buy signal would exist. Because this plan is based on a break of resistance, it is referred to as a Long Resistance Plan.

• Short MCHP slightly near 77.31, target 73.53, Stop Loss @ 77.53. Details

The technical summary data is suggesting a short of MCHP if it tests 77.31 with a downside target of 73.53. We should have a stop loss in place at 77.53 though in case the stock begins to move against the trade. By rule, any test of resistance is a short signal. In this case, if resistance, 77.31, is being tested a short signal would exist. Because this plan is a short plan based on a test of resistance it is referred to as a Short Resistance Plan.

Day Trading Plans for MCHP

• Buy MCHP slightly over 75.76, target 77.31, Stop Loss @ 75.58 Details

If 75.76 begins to break higher, the technical summary data tells us to buy MCHP just slightly over 75.76, with an upside target of 77.31. The data also tells us to set a stop loss @ 75.58 in case the stock turns against the trade. 75.76 is the first level of resistance above 75.72, and by rule, any break above resistance is a buy signal. In this case, 75.76, initial resistance, would be breaking higher, so a buy signal would exist. Because this plan is based on a break of resistance, it is referred to as a Long Resistance Plan.

• Short MCHP slightly near 75.76, target 73.53, Stop Loss @ 75.94. Details

The technical summary data is suggesting a short of MCHP if it tests 75.76 with a downside target of 73.53. We should have a stop loss in place at 75.94 though in case the stock begins to move against the trade. By rule, any test of resistance is a short signal. In this case, if resistance, 75.76, is being tested a short signal would exist. Because this plan is a short plan based on a test of resistance it is referred to as a Short Resistance Plan.

MCHP Ratings for January 25:

Term →	Near	Mid	Long
Rating	Neutral	Strong	Weak
P1	0	0	52.64
P2	72.70	73.53	60.81
P3	75.76	77.31	69.14

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Chart of MCHP with Longer Term Pivots

Our job as #investors is to pay attention to the #stocks we own.  Part of that involves looking at the #fundamentals, but half of the disclosure comes from looking at price action. The  Microchip Technology (NASDAQ: MCHP) data table below can help you with price action, and we have more details too. Trading plans for MCHP are shown here too; these plans are updated in real time for subscribers, where this report is static. If you want an update, or a report on a different stock, please get one here Unlimited Real Time Reports.