Microchip Technology (MCHP) has received a positive adjustment to its Relative Strength (RS) Rating on Monday, increasing it from 67 to 76. This rating, from Investor’s Business Daily, ranges from 1 to 99 and tracks market leadership. It shows how a stock’s price performance over the past year compares to other stocks in the database.
While Microchip Technology recently broke out above its previous entry point from a flat base, it has since fallen back below that level. If a stock rises above a buy point and then drops 7% or more below that level, it is considered a failed breakout. In such cases, it is recommended to wait for the stock to form a new base and breakout before considering an investment. It is important to note that the most recent consolidation is a later-stage base, which typically carries higher risk.
In its last quarter, Microchip Technology reported negative growth for both sales and earnings. The company is scheduled to release its next quarterly results around May 6th. Currently, Microchip Technology holds the No. 5 rank among its peers in the Electronics-Semiconductor Manufacturing industry group, with Taiwan Semiconductor ADR (TSM) ranked as the top stock in the group.
If you are interested in staying up-to-date on chip stocks and semiconductor industry news, it may be beneficial to regularly check resources like Investors Business Daily (IBD). IBD offers tools such as the Relative Strength Rating (RSR) and Relative Strength Line (RSL), which can help investors assess momentum and potential of individual stocks. Additionally, joining an IBD Meetup Group can be a valuable resource for those looking to enhance their investing skills.