On Monday, Microchip Technology (MCHP) stock saw a positive adjustment to its Relative Strength (RS) Rating, moving from 67 to 76. This exclusive rating, given by Investor’s Business Daily, ranges from 1 to 99 and is used to track market leadership. The rating reflects a stock’s price performance over the past 52 weeks compared to all other stocks in the database. According to decades of market research, the best stocks typically have an RS Rating of above 80 in the early stages of a move. Investors are encouraged to monitor Microchip Technology stock to see if it can maintain its renewed price strength and pass this threshold.
When it comes to investing in stocks during both bull and bear markets, it’s important for investors to approach with caution. While Microchip Technology previously broke out and was trading at 94.19, it has since fallen below this entry point and is now trading at a flat base. If a stock surpasses a buy point but then drops 7% or more below that entry price, it is considered a failed base. Investors should wait for the stock to form a new pattern and breakout before considering it again. Additionally, the most recent consolidation for the stock is a later-stage base, which typically carries higher risk.
In its most recent quarter, Microchip Technology saw negative growth in both sales and earnings. The company is expected to release its next quarterly report around May 6th with a No. 5 ranking among its industry peers in the Electronics-Semiconductor Manufacturing sector. With Taiwan Semiconductor ADR (TSM) being the top-ranked stock in this group, Microchip Technology stock is closely watched by investors who are looking for industry news on chip stocks and semiconductor manufacturing trends as well as daily analysis on IBD Live and short-term trend profit opportunities through SwingTrader’s tools for market analysis simplified growth stocks research with IBD’s tools
