Microchip Technology (MCHP): Huge Bearish Pattern Formation Alert
Jenny Rebekka | Mar 13, 2017 11:25AM ET
Investors may want to exit long trades in Microchip Technology Inc. (NASDAQ:MCHP) based on an major bearish chart pattern formation. Recently, Microchip Technology announced earnings that caused the stock to open higher. However, institutional investors quickly sold into that move, collapsing the stock sharply lower. They likely saw a slow-down on the horizon as the stock price has gotten too far ahead of itself.
A good example would be the P/E ratio, which sits at over 180. In any case, ever since the hard institutional sell, small investors have slowly bought the dip, creating a bearish flag formation. This is a precursor to another major decline. The downside target on Microchip Technology Inc. is $66.00 from current levels near $74.00.
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