Stock Price Trends

Microchip Technology Inc (MCHP)

Microchip Technology Inc. is a publicly-listed American corporation that manufactures microcontroller, mixed-signal, analog and Flash-IP integrated circuits.

Stock Price Trends

Stock price trends estimated using linear regression.

Key facts

  • The primary trend is decreasing.
  • The decline rate of the primary trend is 46.39% per annum.
  • MCHP price at the close of November 19, 2024 was $64.88 and was inside the primary price channel.
  • The secondary trend is decreasing.
  • The decline rate of the secondary trend is 96.62% per annum.
  • MCHP price at the close of November 19, 2024 was inside the secondary price channel.

Linear Regression Model

Model equation:
Yi = α + β × Xi + εi

Top border of price channel:
Exp(Yi) = Exp(a + b × Xi + 2 × s)

Bottom border of price channel:
Exp(Yi) = Exp(a + b × Xi – 2 × s)

where:

i - observation number
Yi - natural logarithm of MCHP price
Xi - time index, 1 day interval
σ - standard deviation of εi
a - estimator of α
b - estimator of β
s - estimator of σ
Exp() - calculates the exponent of e


Primary Trend

Start date: May 13, 2024
End date: November 19, 2024

a = 7.3689

b = -0.0017

s = 0.0450

Annual growth rate:

Exp(365 × b) – 1
= Exp(365 × -0.0017) – 1
= -46.39%

Price channel spread:

Exp(4 × s) – 1
= Exp(4 × 0.0450) – 1
= 19.73%

May 13, 2024 calculations

Top border of price channel:

Exp(Y1,125)
= Exp(a + b × X1,125 + 2 × s)
= Exp(a + b × 1,636 + 2 × s)
= Exp(7.3689 + -0.0017 × 1,636 + 2 × 0.0450)
= Exp(4.6646)
= $106.12

Bottom border of price channel:

Exp(Y1,125)
= Exp(a + b × X1,125 – 2 × s)
= Exp(a + b × 1,636 – 2 × s)
= Exp(7.3689 + -0.0017 × 1,636 – 2 × 0.0450)
= Exp(4.4845)
= $88.63

November 19, 2024 calculations

Top border of price channel:

Exp(Y1,257)
= Exp(a + b × X1,257 + 2 × s)
= Exp(a + b × 1,826 + 2 × s)
= Exp(7.3689 + -0.0017 × 1,826 + 2 × 0.0450)
= Exp(4.3401)
= $76.71

Bottom border of price channel:

Exp(Y1,257)
= Exp(a + b × X1,257 – 2 × s)
= Exp(a + b × 1,826 – 2 × s)
= Exp(7.3689 + -0.0017 × 1,826 – 2 × 0.0450)
= Exp(4.1600)
= $64.07

Description

  • The primary trend is decreasing.
  • The decline rate of the primary trend is 46.39% per annum.
  • MCHP price at the close of November 19, 2024 was $64.88 and was inside the primary price channel.

Secondary Trend

Start date: October 28, 2024
End date: November 19, 2024

a = 21.1045

b = -0.0093

s = 0.0268

Annual growth rate:

Exp(365 × b) – 1
= Exp(365 × -0.0093) – 1
= -96.62%

Price channel spread:

Exp(4 × s) – 1
= Exp(4 × 0.0268) – 1
= 11.33%

October 28, 2024 calculations

Top border of price channel:

Exp(Y1,241)
= Exp(a + b × X1,241 + 2 × s)
= Exp(a + b × 1,804 + 2 × s)
= Exp(21.1045 + -0.0093 × 1,804 + 2 × 0.0268)
= Exp(4.4161)
= $82.77

Bottom border of price channel:

Exp(Y1,241)
= Exp(a + b × X1,241 – 2 × s)
= Exp(a + b × 1,804 – 2 × s)
= Exp(21.1045 + -0.0093 × 1,804 – 2 × 0.0268)
= Exp(4.3088)
= $74.35

November 19, 2024 calculations

Top border of price channel:

Exp(Y1,257)
= Exp(a + b × X1,257 + 2 × s)
= Exp(a + b × 1,826 + 2 × s)
= Exp(21.1045 + -0.0093 × 1,826 + 2 × 0.0268)
= Exp(4.2119)
= $67.48

Bottom border of price channel:

Exp(Y1,257)
= Exp(a + b × X1,257 – 2 × s)
= Exp(a + b × 1,826 – 2 × s)
= Exp(21.1045 + -0.0093 × 1,826 – 2 × 0.0268)
= Exp(4.1046)
= $60.62

Description

  • The secondary trend is decreasing.
  • The decline rate of the secondary trend is 96.62% per annum.
  • MCHP price at the close of November 19, 2024 was inside the secondary price channel.