Boston, MA, 04/22/2014 (usastockreport) – On analyzing the weekly charts, Microchip Technology Inc. (NASDAQ:MCHP) is in a strong uptrend. The stock has been making higher highs and higher lows. The stock is also trading comfortably above all its important moving averages. The stock had broken out of a double bottom in early 2013 and has been on an uptrend since then. The stock had formed a bullish hammer on the weekly chart last week, indicating that the bullish trend is likely to continue after the earlier threefour weeks of downtrend. There are multiple divergences in MACD as well as MACD histogram which warrant the need to be cautious. Therefore, fresh longs are recommended only once it closes above $49.00 on a weekly basis. Strong support exists at $43.90 which is a weekly trend deciding level. Any dips towards $43.90 should be used as a buying opportunity. Further support exists at $39.93 and $35.25. RSI is at 64 and moving up, which is a bullish sign. There are also negative divergences on MACD as mentioned earlier, making it advisable to take longs only after weekly close above $49.
(Fig:) Daily chart for Microchip Technology Inc. (NASDAQ:MCHP)
On analyzing the daily charts, the overall trend for the stock of Microchip Technology Inc. (NASDAQ:MCHP) seems to be up. The stock has been making higher highs and higher lows. The stock made a strong close on Thursday, April 17, 2014;and closed above the important level of $47.00 which is the five day Exponential moving average. However, it took resistance at the 20 day SMA and closed at the same level of the 20 day SMA. A close above this level on Mondayindicates further strength. Strong support exists at $47 which is the daily pivot. Further support exists at $45.36 and $42.97. Strong resistance exists at $49.31 and then at $50.87.
Microchip Technology Inc. (NASDAQ:MCHP) has completed the $394 Million acquisition of Supertex that had started in February 2014 when the agreement was signed.