Investing in stocks during both bull and bear markets requires a careful approach, and Microchip Technology (MCHP) stock is no exception. Although the company previously broke out, it has since fallen below the previous entry point of 94.19 from 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 6. With a No. 5 ranking among its industry peers in the Electronics-Semiconductor Manufacturing sector, Microchip Technology stock is closely watched. The top-ranked stock in this group is Taiwan Semiconductor ADR (TSM). For more industry news, investors can refer to “Chip Stocks To Watch And Semiconductor Industry News.”
Investor’s Business Daily (IBD) provides exclusive ratings and tools for individual investors to assist with market analysis. Its Relative Strength (RS) Rating ranges from 1 to 99 and tracks market leadership by reflecting a stock’s price performance over the past 52 weeks compared to all other stocks in the database. The rating reflects the best stocks typically have an RS Rating of above 80 in the early stages of a move. In order to simplify researching growth stocks, IBD offers tools such as IBD Live daily stock market analysis and SwingTrader which allows investors to profit from short-term trends.