Microchip Technologies Is Ramping

Microchip Technologies (MCHP) is ramping on extremely heavy trade. The specialized semiconductor company began the day with a huge upside gap that pushed shares to fresh 52-week highs. After a brief dip, which tested the previous highs set back in August, the shares surged higher and are now up 10%. Credit Suisse 's positive comments about the stock are adding fuel to a rally that will attract the heaviest upside trade of the year.

The powerful momentum unleashed today ends a 12-week consolidation. After reporting a strong first quarter, Microchip's shares peaked back on Aug. 1. The stock jumped 5% on the news but was unable to build on the breakout. MCHP faded over the next three weeks before hitting what has proven to be a major support area near $38.35. This key level held in September and for multi-week lows this month as well. While support near the June high held, MCHP put in a lower high in September and, until today's ramp, had another lower high in place this month. With this textbook-like consolidation having run its course, MCHP is set up well for fresh rally leg....115 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.

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