Microchip Technology is trading in a bullish trend and several arguments are in favor of the continuation of this trend.

The company shows strong fundamentals. Firstly, the high valuation of the group shows a great investors confidence in it because there are willing to pay a high price for the stock. Moreover, the consensus revised upward EPS estimates for this year and that let see a great potential for the security on the stock market.

From a technical viewpoint, the security is trading in a bullish trend in the short and the long term. Increasing moving averages let think there will be no major reversal in the coming trading sessions. However, prices has known a slight decrease towards the USD 39.2 support, corresponding to the 50-day moving average. This threshold, if preserved, would allow the stock to bounce towards USD 41.7.

According to both technical and fundamental elements, it seems opportune to take a long position at the current price. The bullish trend should allow the security to reach the USD 41.7 resistance. If the stock crosses it, a new target price will be set. A stop loss will be placed under the USD 39.2 short term support to avoid a downtrend.