$MCHP Ready to Break Downtrend?

MCHP is heavy into automotive chips along with many other industries as well. When looking at the chart I see that we have a longer-term double bottom formation that put into play an Undercut and Rally on Nov 2nd, which was the earnings date. That is technically still in play.

It looks like it will break out of the downtrend line today where I have an alert. I like the accumulation volume before and after earnings. MCHP has regained the faster moving averages but is still below the 50 DMA in red and the 40-week MA in white. The MACD turned up just 3 days ago.

Lastly, MCHP has either been reiterated or upgraded to either “Buy” or “Outperform” by at least 4 different analysts in the last few days. The average price target is $101.

Ideas, not investing / trading advice. Comments always welcome. Thanks for looking.

Comment:

Good thing I don't make trades based on pre-market prices... I still like this but does not look like it's going to break-out today. We will see.

Comment:

I opened a position in this yesterday and added along the day to bring up to a 3/4 size position. I added again this morning as it exceeded pre-market highs. I now have a full sized lot. I may continue to add. I think this one has legs. TBD.

Comment:

I wanted to show this daily chart. What a thing of beauty. Some consolidation is not out of the question. But it's hot right now.