Some thoughts on a predictable pattern in Microchip Tech (MCHP) (June 02, 2014)
I want to look at Microchip Technology ( NASDAQ:MCHP ), here’s why: a lot of stocks are just pausing, today there wasn’t a lot of up and down movement in the ones that I care about anyway, this would fill the bill there are too, down 35 cents. But here’s the thing I like this pattern, it’s traded sideways to down before, this is a little more down and less sideways; but look at this, this stock has a habit of doing this, just kind of drifting lower, generally speaking though here’s your support line, so the stock bounced off support here, it’s up at the top of the channel.
So I think what you want to do is watch this; if the stock starts trading in the green box I think this is a stock you can buy. There’s absolutely nothing wrong with the uptrend; look at this, it’s been consolidating a little bit, that’s healthy; this a stock that I think ultimately moves higher. You don’t want to be chasing this stock though, chasing this stock hasn’t really worked, “Oh it’s got a big high range bounce off the 50-day moving average.” Well that didn’t work out too well did it? This is a stock that you just want to buy and hold, and I think you can be buying it right now and then just holding it.
Free Chart