MCHP closes higher for the 2nd day in a row
Microchip Technology Incorporated (MCHP) Technical Analysis Report for Jun 30, 2020 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, MCHP finished the month 9.68% higher at 105.31 after gaining $2.74 (2.67%) today, outperforming the Nasdaq 100 (1.96%). Today's close at 105.31 marks the highest recorded closing price since June 9th. The bulls were in full control today, moving the market higher throughout the whole session. Closing above Monday's high at 103.24, the market confirmed its breakout through the previous session high after trading up to $2.52 above it intraday.
Daily Candlestick Chart (MCHP as at Jun 30, 2020):
Tuesday's trading range has been $3.52 (3.42%), that's slightly below the last trading month's daily average range of $3.65. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently strongly lower than usual for MCHP.
One bullish candlestick pattern matches today's price action, the White Candle. The last time a White Candle showed up on June 25th, MCHP actually lost -1.89% on the following trading day.
Microchip Technology managed to close back above the 20-day moving average at 103.87 for the first time since June 23rd.
Although still in a long-term downtrend, the short and medium-term trends both turned bullish already. With its 50-day moving average crossing above its 200-day moving average, the stock has entered a so-called "Golden Cross" for the first time since March 25th. Showing increasing upward momentum in the short and medium-term the "Golden Cross" is known to indicate a potential bull market on the horizon.
With prices trading close to this year's high at 113.28, upside momentum could accelerate should the share be able to break out to new highs for the year.
Among the 10 market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bounced off Technical Support S1" stand out. Its common bullish interpretation has been confirmed for Microchip Technology. Out of 425 times, MCHP closed higher 57.41% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the long side has been after 10 trading days, showing a win rate of 58.35% with an average market move of 0.77%.