Earnings Could Be the Catalyst 🚀

Microchip Technology has been building a multi-year Cup & Handle pattern on the weekly chart. After completing the cup below the trendline resistance, the stock is now forming a tight, downward-sloping handle, often the final consolidation before a potential impulsive move.

The handle is narrowing, volatility is contracting, and price is approaching the key breakout level. A sustained move above $104 would confirm the pattern and open the door for the measured target near $170, representing a potential gain of more than 60% from the breakout zone.

Today's earnings may provide exactly the catalyst bulls have been waiting for.

📊 Earnings Update

✅ Beat on both revenue and EPS

Revenue exceeded Wall Street expectations as industrial, automotive, aerospace and AI-related data center demand continued to improve.
EPS also came in above consensus.
Management issued stronger-than-expected guidance for the next quarter, signaling that the semiconductor recovery is gaining momentum. Shares rallied in after-hours trading following the report.
Technical Levels

🔹 Breakout Confirmation: Weekly close above $104

🟢 Support: ~$70

🎯Target: ~$120-150
🎯🎯 Measured Target: ~$170

As always, confirmation is key. The best setups are those that combine strong fundamentals, positive earnings surprises, and high-probability technical structures. MCHP is attempting to align all three.

Will this week's candle become the breakout that completes the pattern? 👀