Its $STM turn to outperform
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 ifSTM breaks out but MCHP then something might be wrong.
Always keep an eye on how related stocks behave.
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.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.