Why It Pays To Watch TradersWire

Technical confirmation of a trade is always
the most important reason for entering into a position, but sometimes you need
another set of eyes to help you find that promising trade type.
One of the
great tools at your disposal at Trading Markets are the TradersWire
, which can help direct you towards a promising technical situation
that might otherwise go unnoticed.


Setup Alert

Within the semiconductors (SMH),
Microchip Technology (MCHP)
is showing signs of relative weakness on both an intraday and daily basis.
stock is consolidating in a contracting consolidation formation on an intraday
basis. This pattern is occurring at the 200-Day EMA. The stock had been a leader
within the group, as evidenced by the fact that it has “proper
alignment” of its 20, 50, and 200-Day EMAs, but its most recent action has
gone counter to the broader markets, and today is showing a similar pattern. The
stock is off .35 at 24.65 as the sector HOLDR (SMH)
holds its positive bias. Microchip holds a 3
Month RS of 44.



As you can see, neither sector strength nor the
200-Day was helping MCHP today. After our initial alert one might have noticed
the very heavy day of distribution that the stock witnessed in Monday’s session,
adding further confirmation to the trade. If you still weren’t
“listening” to the market, or looking at us for that matter, we were
still looking after you.



Microchip Technology (MCHP)
has weakened since our initial post.
The stock is rolling out of the
contracting consolidation mentioned at 10:57. MCHP is now down .48 at 24.53.


Intraday Update

Microchip Technology (MCHP)
is now testing session lows set at the opening of trade
on a breakdown of a
6-Bar consolidation pattern. MCHP is down .81 at 24.20.


As you can “see”, two more
TradersWire Insights went out after the initial setup that could have helped
guide you in the right direction. In Microchip’s case, that direction was
clearly down.