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Microchip Technology (MCHP) Crossed Above the 50-Day Moving Average: What That Means for Investors
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 50-day moving average, and this suggests a short-term bullish trend.
The 50-day simple moving average is a widely used technical indicator that helps determine support or resistance levels for different types of securities. It's one of three major moving averages, but takes precedent because it's the first sign of an up or down trend.
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.
Once investors consider MCHP's positive earnings estimate revisions, the bullish case only solidifies. No estimate has gone lower in the past two months for the current fiscal year, compared to 10 higher, and the consensus estimate has increased as well.
Investors should think about putting MCHP on their watchlist given the ultra-important technical indicator and positive move in earnings estimate revisions.