| Microchip Technology develops, manufactures and sells smart, connected and secure embedded control solutions. Co.'s product portfolio is a Total System Solution (TSS) for its customers that can provide a portion of the silicon requirements in their applications. TSS is a combination of hardware, software and services. Co. provides a family of proprietary general purpose microcontroller products marketed under multiple brand names. Co. also provides other microcontrollers for automotive, industrial, computing, communications, lighting, power supplies, motor control, human machine interface, security, wired connectivity and wireless connectivity applications. |
When researching a stock like Microchip Technology, many investors are the most familiar with Fundamental Analysis — looking at a company's balance sheet, earnings, revenues, and what's happening in that company's underlying business. Investors who use Fundamental Analysis to identify good stocks to buy or sell can also benefit from MCHP Technical Analysis to help find a good entry or exit point. Technical Analysis is blind to the fundamentals and looks only at the trading data for MCHP stock — the real life supply and demand for the stock over time — and examines that data in different ways. One of those ways is to calculate a Simpe Moving Average ("SMA") by looking back a certain number of days. One of the most popular "longer look-backs" is the MCHP 200 day moving average ("MCHP 200 DMA"), while one of the most popular "shorter look-backs" is the MCHP 50 day moving average ("MCHP 50 DMA"). A chart showing both of these popular moving averages is shown on this page for Microchip Technology. Comparing two moving averages against each other can be a useful visualization tool: by calculating the difference between the MCHP 200 DMA and the MCHP 50 DMA, we get a moving average convergence divergence indicator ("MCHP MACD"). The MCHP MACD chart, in conjunction with the chart of the moving averages, basically helps in visualizing how the moving averages are showing convergence (moving closer together), or divergence (moving farther apart).