Microchip Technology Incorporated Stock Forecast
Explanation to Bollinger's Bands
Bollinger Bands was created by John Bollinger in the early 1980s, its purpose is to define price action relative to the assets highs and lows. This technical indicator is used to identify buy and sell signals and has proven very well in doing so.
Bollinger Bands consist of a set of three curves drawn in relation to securities prices. The middle band is a measure of the intermediate-term trend, usually a simple moving average, that serves as the base for the upper and lower bands. The interval between the upper and lower bands and the middle band is determined by volatility, typically the standard deviation of the same data that were used for the average. StockInvest.us uses Bollingers suggested 20 day average.
Middle Bollinger Band = 20-period simple moving average
Upper Bollinger Band = Middle Bollinger Band + 2 * 20-period standard deviation
Lower Bollinger Band = Middle Bollinger Band - 2 * 20-period standard deviation
BandWidth defines the current width of the band.
%b defines the current position within the band.
BandWidth = (Upper Bollinger Band - Lower Bollinger Band) / Middle Bollinger Band
%b = (Last - Lower Bollinger Band) / (Upper Bollinger Band - Lower Bollinger Band)
Live Samples:
Bottlenecks in bandwidth indicate an upcoming change. Break up through the moving average line or continuous movements above the moving average line indicate a break up, and vice versa.
Source: http://www.bollingerbands.com
Green day on Friday for Microchip Technology Incorporated stock after gaining 1.51%
(Updated on Apr 26, 2024)
The Microchip Technology Incorporated stock price gained 1.51% on the last trading day (Friday, 26th Apr 2024), rising from $92.21 to $93.60. It has now gained 5 days in a row. It will be exciting to see whether it manages to continue gaining or take a minor break for the next few days. During the last trading day the stock fluctuated 3.47% from a day low at $91.46 to a day high of $94.63. The price has risen in 7 of the last 10 days and is up by 9.29% over the past 2 weeks. Volume fell on the last day by -624 thousand shares and in total, 6 million shares were bought and sold for approximately $525.31 million. You should take into consideration that falling volume on higher prices causes divergence and may be an early warning about possible changes over the next couple of days.
The stock lies in the upper part of a wide and weak rising trend in the short term, and this may normally pose a very good selling opportunity for the short-term trader as reaction back towards the lower part of the trend can be expected. A break-up at the top trend line at $96.18 will firstly indicate a stronger rate of rising. Given the current short-term trend, the stock is expected to rise 5.52% during the next 3 months and, with a 90% probability hold a price between $86.62 and $101.49 at the end of this 3-month period.
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MCHP Signals & Forecast
The Microchip Technology Incorporated stock holds buy signals from both short and long-term Moving Averages giving a positive forecast for the stock, but the stock has a general sell signal from the relation between the two signals where the long-term average is above the short-term average. On corrections down, there will be some support from the lines at $87.44 and $88.15. A breakdown below any of these levels will issue sell signals. A buy signal was issued from a pivot bottom point on Friday, April 19, 2024, and so far it has risen 14.59%. Further rise is indicated until a new top pivot has been found. Furthermore, there is a buy signal from the 3 month Moving Average Convergence Divergence (MACD). Volume fell during the last trading day despite gaining prices. This causes a divergence between volume and price and it may be an early warning. The stock should be watched closely.
Support, Risk & Stop-loss for Microchip Technology Incorporated stock
On the downside, the stock finds support just below today's level from accumulated volume at $88.64 and $85.64. There is a natural risk involved when a stock is testing a support level, since if this is broken, the stock then may fall to the next support level. In this case, Microchip Technology Incorporated finds support just below today's level at $88.64. If this is broken, then the next support from accumulated volume will be at $85.64 and $84.29.
This stock has average movements during the day and with good trading volume, the risk is considered to be medium. During the last day, the stock moved $3.17 between high and low, or 3.47%. For the last week, the stock has had daily average volatility of 3.24%.
Our recommended stop-loss: $90.47 (-3.34%) (This stock has medium daily movements and this gives medium risk. There is a buy signal from a pivot bottom found 5 days ago.)
Trading Expectations (MCHP) For The Upcoming Trading Day Of Monday 29th
For the upcoming trading day on Monday, 29th we expect Microchip Technology Incorporated to open at $93.23, and during the day (based on 14 day Average True Range), to move between $90.77 and $96.43, which gives a possible trading interval of +/-$2.83 (+/-3.02%) up or down from last closing price. If Microchip Technology Incorporated takes out the full calculated possible swing range there will be an estimated 6.04% move between the lowest and the highest trading price during the day.
With no resistance above and support from accumulated volume @ $88.64, some $4.96 (5.30%) from the current price of $93.60, our system finds the risk reward attractive.
Is Microchip Technology Incorporated stock A Buy?
Microchip Technology Incorporated holds several positive signals, but we still don't find these to be enough for a buy candidate. At the current level, it should be considered as a hold candidate (hold or accumulate) in this position whilst awaiting further development.
Current score: 0.600 Hold/Accumulate Unchanged
Predicted Opening Price for Microchip Technology Incorporated of Monday, April 29, 2024
| Fair opening price April 29, 2024 | Current price |
|---|---|
| $93.23 ( 0.395%) | $93.60 |
The predicted opening price is based on yesterday's movements between high, low, and closing price.
Trading levels for MCHP
Fibonacci Support & Resistance Levels
| Level | Price | |||
|---|---|---|---|---|
| Resistance | R3 | 96.40 | 2.99 % | |
| R2 | 95.19 | 1.70 % | ||
| R1 | 94.44 | 0.90 % | ||
| Current price: | 93.60 | |||
| Support | S1 | 92.02 | -1.69 % | |
| S2 | 91.27 | -2.49 % | ||
| S3 | 90.06 | -3.78 % |
Accumulated Volume Support & Resistance Levels
| Level | Price | |||
|---|---|---|---|---|
| Resistance | R3 | 0 | . | |
| R2 | 0 | . | ||
| R1 | 0 | . | ||
| Current price | 93.60 | |||
| Support | S1 | 88.64 | -5.30% | |
| S2 | 85.64 | -8.50% | ||
| S3 | 84.29 | -9.95% |
MCHP Dividend Payout History
| # | Ex-Date | Pay Date | Amount | Yield | |
|---|---|---|---|---|---|
| 1 | Feb 01, 2024 | Feb 22, 2024 | Mar 08, 2024 | $0.450 | 0.507% |
| 2 | Nov 02, 2023 | Nov 21, 2023 | Dec 06, 2023 | $0.440 | 0.526% |
| 3 | Aug 03, 2023 | Aug 21, 2023 | Sep 05, 2023 | $0.410 | 0.503% |
| 4 | May 04, 2023 | May 19, 2023 | Jun 05, 2023 | $0.383 | 0.509% |
| 5 | Feb 02, 2023 | Feb 17, 2023 | Mar 07, 2023 | $0.358 | 0.436% |
FAQ
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