Microchip Technology Stock Analysis: Impending Death Cross Sparks Bearish Sentiment Microchip Technology Stock Analysis: Impending Death Cross Sparks Bearish Sentiment

Written By Michael Gary Scott

Microchip Technology Inc. MCHP finds itself at a critical juncture, with its stock inching closer to a noteworthy technical indicator known as the Death Cross.

Having witnessed a 6.22% decline year-to-date and an 8.5% drop in just the past month, the once stalwart chipmaker faces a formidable obstacle.

Approaching Crossroad of Moving Averages

The current stock price of Microchip Technology stands at $80.85, with the 50-day simple moving average (SMA) at $87.91 and the 200-day SMA at $87.33. These moving averages are on a collision course, hinting at a potential Death Cross.


The intertwining of these SMAs paints a bleak future for Microchip stock, with technical indicators pointing towards an extended bearish phase. At present, the 20-day SMA at $81.71 looms above the stock price, accentuating the pessimistic outlook. In a glimmer of hope, the eight-day SMA of $77.65 indicates a bullish signal, although it fails to overshadow the prevailing downward trend.

Also Read: Applied Materials Navigates A Bearish Trend With Bullish Hopes Ahead Of Q3 Earnings

MACD, RSI: Bearish Influence Prevails

The Moving Average Convergence Divergence (MACD) indicator, currently at a negative 3.05, reinforces the bearish momentum gripping Microchip stock. Coupled with an RSI of 46.42, placing the stock in a neutral territory, the signals suggest that an imminent reversal is unlikely.

Further exacerbating the bearish sentiment are the Bollinger Bands for Microchip Technology, with a range of $76.97 to $90.47, showing the stock price veering towards the lower boundary. This alignment indicates a potential further decline in Microchip’s stock value.

As the specter of a Death Cross looms over Microchip Technology, investors are advised to exercise caution. The convergence of technical indicators signals a rough path ahead for the stock.

See also  Exploring Promising Opportunities in Semiconductor Stocks Exploring Promising Opportunities in Semiconductor Stocks

Despite the company’s robust fundamentals in microcontrollers, the market sentiment seems to forecast challenging times ahead.

Read Next:

Photo: Shutterstock