Gap Leading to Channel Break

11 Jul 2022

With the MACD and Stoch flashing signals of bullish divergence and a gap that has not been filled, it seems likely that MCHP is getting ready to test its channel upper bound. To reach the channel upper bound it must clear another previously two unfilled gaps, the 21EMA and 63EMA.
We are also seeing a cross in the 21Mom, Stoch crossing over sold and the MACD preparing to cross its over sold.
If todays close is above yesterdays we will also see the candle pattern Three White Soliders. Though this pattern tends to warn that the majority of the bullish move is over and waiting for a throwback might be wise.