Ticker: MCHP (NASDAQ)
Setup: Falling Wedge Breakout + Oversold Bounce
Breakout Zone: ~$40.74 (yellow zone breakout)
Trade Plan (Long Position)
Entry Zone: $40.60–$40.80
Stop Loss (SL): Below $39.08 (white key level)
Take Profit Targets:
TP1: $43.27 (red zone – resistance shelf)
TP2: $46.10 (green zone – gap-fill target)
Risk-Reward Breakdown
Risk:
$40.74 – $39.08 = $1.66
Reward to TP1:
$43.27 – $40.74 = $2.53 → 1.52:1 R/R
Reward to TP2:
$46.10 – $40.74 = $5.36 → 3.22:1 R/R
Technical Highlights
Oversold bounce with bullish reversal candle
Falling wedge breakout forming
Yellow zone reclaim signals strength
Heavy sell-off likely overextended = high bounce potential
️ Trade Management
After TP1:
– Move SL to breakeven
– Book partial gains
Let rest run to TP2 with trailing stop under rising support
️ Invalidation Triggers
Break and close below $39.08
Rejection with heavy volume at yellow zone
Bearish engulfing back into wedge range