MCHP closes lower for the 2nd day in a row
Microchip Technology (MCHP) Technical Analysis Report for Apr 16, 2018
Moving lower for the 2nd day in a row, MCHP ended Monday at 86.23 losing $1.10 (-1.26%). Today's closing price of 86.23 marks the lowest close since April 9th. The bears were in full control today, moving the market lower throughout the whole session. Closing below Friday's low at 87.00, the stock confirms its breakout through the prior session's low having traded $1.04 below it intraday. Ending with a weak close near the low of the day sets a bearish note for the next session.
Monday's trading range was $2.24 (2.54%), that's below last trading month's daily average range of $2.82. Things look different on a weekly scale, where volatility is below the markets average with the monthly volatility being slightly below average.
Prices are trading close to the key resistance level at 87.56.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Selling might speed up should prices move below the nearby swing low at 85.88 where further sell stops could get activated. As prices are trading close to April's low at 85.88, downside momentum might accelerate should the share mark new lows for the month.
While classical technical analysis indicates a slightly bearish sentiment for the next trading day, our quantitative statistics show a different picture being bullish.
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