Microchip Technology Inc

MCHP remains in a Stage 4 downtrend with sequential lower highs and lower lows under declining EMAs and SMAs. Extreme oversold conditions have failed to produce a rebound into resistance, reinforcing a bearish medium-term bias. Execution is deferred until weak bounces into the 9/20 EMAs and 50-day SMA near the mid-$70s, where a rejection offers optimal shorting opportunities. A sustained reclaim and hold above the 20-day EMA would invalidate this stance.

• ↑Q2 revenue $1.48B (+38% YoY) and EPS $0.76 beat estimates.
• ↑Raised Q3 revenue guide to $1.60B, operating margin up to 22.7%.
• ↓Debt-to-equity elevated, heavy borrowing could strain cash with rising rates.