Microchip Technology Inc. rallied from $16.23 (U.S.) in 2009 to $41.50 in 2011 (A-B) and then settled in a large horizontal trading range mostly between $29 and $38 (dashed lines). The recent rise above $41 (C) signalled the breakout from this range and the start of a new major up-leg. A better entry level may occur, but only a decline below $36-$37 would be negative.
Point & Figure measurements provide targets of $45 and $49. The large trading range supports higher targets.
Monica Rizk is the senior technical analyst for Phases & Cycles Inc. (www.phases-cycles.com). Ron Meisels is a contributor to the www.NA-marketletter.com website and Tweets at @Ronsbriefs. They may hold shares in companies profiled. Please see the site for a glossary.