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Microchip Technology (MCHP) Recently Broke Out Above the 200-Day Moving Average
From a technical perspective, Microchip Technology (MCHP - Free Report) is looking like an interesting pick, as it just reached a key level of support. MCHP recently overtook the 200-day moving average, and this suggests a long-term bullish trend.
The 200-day simple moving average helps traders and analysts determine overall long-term market trends for stocks, commodities, indexes, and other financial instruments. The indicator moves higher or lower along with longer-term price moves, serving as a support or resistance level.
MCHP has rallied 6.1% over the past four weeks, and the company is a Zacks Rank #2 (Buy) at the moment. This combination suggests MCHP could be on the verge of another move higher.
The bullish case solidifies once investors consider MCHP's positive earnings estimate revisions. No estimate has gone lower in the past two months for the current fiscal year, compared to 10 higher, while the consensus estimate has increased too.
Investors should think about putting MCHP on their watchlist given the ultra-important technical indicator and positive move in earnings estimate revisions.