Microchip, Under Armour, Avery Dennison: A Technical Trader's Take on the Moves

The post-earnings moves tell a clear story of supply and demand. For Microchip, the reaction was a classic case of a beat being sold. Despite a solid Q3 EPS beat of $0.44, the stock closed at $77.78 and is now stuck below the key 50-day moving average. The immediate resistance is clear: the stock faces a wall of supply near $80. This level is critical; a decisive break above it would signal buyers are in control, while a failure to hold above the 50-day MA suggests the recent weakness is intact.

Under Armour's setup is one of a relief rally meeting resistance. The stock has been under pressure, and its position remains below its 50-day moving average. The recent beat provided a pop, but the rally is capped by the prior high near $10. That level is now the key resistance; holding above it would be needed to confirm a trend reversal, but for now, the path of least resistance looks lower.

Avery Dennison is in a different zone entirely. The stock is trading just shy of its 52-week high of $209.83. This proximity to the top of its range is a major red flag for technical traders. It indicates strong supply is waiting at that resistance level. Any attempt to push higher will likely meet aggressive selling, making a breakout here a high-risk proposition without a significant volume surge.

Volume & Momentum Analysis

Volume tells the real story of conviction behind price moves. For Microchip, the muted reaction to its earnings beat is a classic sign of weak volume. The stock's slight decline after a Q3 EPS beat of $0.44 shows buyers were absent. This lack of follow-through volume confirms the market's focus on the underlying GAAP weakness and one-time charges, not the headline beat. The relative strength has been weakening, with the stock stuck below its 50-day moving average. This is a bearish signal; without volume to support the move, the path of least resistance remains lower.

Under Armour's setup is different. The stock's recent pop on its Q3 beat had volume support, which is positive. However, that rally is happening from a position of weakness. The stock remains below its 50-day moving average, confirming the broader downtrend. Momentum indicators are now pointing to oversold territory, which can fuel a relief bounce. But oversold conditions often precede deeper declines if the underlying trend is broken. The volume on the bounce is a good sign for a short-term countertrend move, but it doesn't change the bearish trend structure.

Avery Dennison is in a strong volume-driven uptrend. The stock's move toward its 52-week high of $209.83 has been accompanied by strong volume, confirming buyer conviction. This volume surge is a direct result of the Q4 beat, where the company posted a non-GAAP profit of $2.45 per share, beating estimates. The momentum is now overbought, with the stock trading near its all-time highs. This creates a high-risk, high-reward setup. The strong volume suggests the uptrend is intact, but the overbought condition near resistance means any pullback could be sharp.

Technical Outlook & Targets

The technical structure sets the stage for where each stock could head next. For Microchip, the immediate battleground is the $80 resistance level. A decisive break above that with sustained volume is the only way to confirm a bullish breakout. That move would open the path toward the analyst average target near $82.73. Until then, the stock is trapped in a downtrend, with the 50-day moving average acting as a key dynamic resistance. A failure to hold above $80 would likely see sellers target the next support zone around $75.

Under Armour's setup requires a shift in trend structure. The stock remains below its 50-day moving average, which is the primary resistance for any meaningful rally. A sustained move above that level is the minimum requirement to signal a trend reversal. For now, the path of least resistance is lower. The recent pop has exhausted the oversold bounce, and the next key level to watch is a potential pullback target near $8.50, which aligns with the stock's recent low ground.

Avery Dennison is the most stretched technically. The stock is trading just shy of its 52-week high of $209.83. A break above that resistance is needed for further upside, but the risk of a sharp pullback is elevated. The strong volume-driven uptrend suggests buyers are still in control, but the overbought condition near the top of its range is a classic setup for a correction. Any retreat should find support near the $180 level, which is the base of the recent consolidation. The stock's momentum is fading, and a failure to clear the $209.83 ceiling could trigger a swift move lower.