The Relative Strength (RS) Rating of Microchip Technology (MCHP) stock increased from 67 to 76 on Monday, as ranked by Investor’s Business Daily. This exclusive rating compares a stock’s price performance over the past year against all other stocks in the database. Historically, the best stocks tend to have an RS rating above 80 during early stages of their moves. It remains to be seen if Microchip Technology can maintain its renewed price strength and surpass this threshold.
When making investments in both bullish and bearish markets, it is crucial to consider a stock’s current positioning. Microchip Technology previously broke out but later fell back below the entry point of 94.19 from a flat base. When a stock rises above a buy point and then retreats 7% or more below that point, it is considered a failed base. In these cases, it is advisable to wait for the stock to form a new pattern and breakout again. Additionally, the most recent consolidation suggests that this is a later-stage base, which carries higher risks.
While Microchip Technology posted negative growth in sales and earnings last quarter, investors can look forward to the next quarterly report around May 6th. In the Electronics-Semiconductor Manufacturing industry group, Microchip Technology holds the No. 5 rank among its peers. Taiwan Semiconductor ADR (TSM) holds the top spot in this group for more insights into industry news. For more information on chip stocks and semiconductor industry news, check out “Chip Stocks To Watch And Semiconductor Industry News.”
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