I’ve liked Microchip Tech ($MCHP) for a while but it hasn’t given me the low-risk entry I was looking for, until now. Here’s the weekly chart where you can see the breakout it had from a huge descending triangle last month.
Looking at the last six months in more detail on the daily chart below, you see the uptrend in December kick off with a surge in volume, eventually resulting in the high-volume break of that descending trendline 3 weeks ago.
It’s since consolidated that move forming another smaller triangle in the process, and is in a confirmed uptrend with a rising 200dma. The whole host of support beneath of daily and weekly price levels, MA’s, and the descending trendline, gives us a solid invalidation point and a low-risk entry to the ongoing uptrend.
Jon Boorman, CMT, is a market technician, analyst, and trader with 25 years experience in global equity, forex, and futures markets. He employs trend following and momentum strategies to generate actionable trade ideas. 
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