dpuleo19

Its $STM turn to outperform

Long
NASDAQ:MCHP   Microchip Technology Incorporated
Whenever I find two stocks acting well I always want to buy the best but, how to know this?

Both are forming a shark pattern in the weekly chart, and both are from the same industry, semiconductors.

So how to choose? For me, a simple ratio will do it. It will show which one is outperforming the other.

In this case STM is being buyed more aggressively than MCHP .

I'll wait for the breakout above $51 to get in and use the previous weekly lows for the stop loss.

The thing is that if STM breaks out but MCHP then something might be wrong.

Always keep an eye on how related stocks behave.

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