MCHP Long Setup: Oversold Rebound w/ Rising Volatility & Volume

12월 7일

Microchip Technology (MCHP) is presenting a promising long opportunity for a temporary rebound, supported by three strong technical factors:

• Slow Stochastic in Extreme Oversold Territory: The indicator is below 20, signaling excessive selling pressure, often linked to potential short-term recoveries.
  
• Rising Volatility Index (LSVI): The significant increase in volatility suggests the market is entering a phase of larger price movements, increasing the probability of a sharper rebound.
  
• Increasing Volume with Reduced Decline: Recent candles show higher trading volume accompanied by a slowing rate of decline, indicating potential buyer activity and a technical correction from the recent sharp drop.
  

With the price near a critical support zone and a target identified at $65.00 (10% gain), this setup offers a compelling risk-reward ratio for short-term traders. If the price crosses above the red line, it may reach $71.00 (20% gain).

Watching for confirmations such as a %K/%D crossover on the Slow Stoch and sustained buying volume will be key to validating this thesis.

Disclaimer: Always manage risk carefully, particularly in high-volatility environments.

12월 7일

노트

This trade carries risk, so my stop-loss will be set between 1.5% and 2% (approximately $58.00).

7일 전

노트

The trade is working.