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Micron Know-how (MU) was reviewed on May 13 and we advised that “Very similar to other stocks that have experienced declines, MU could phase a non permanent rebound in price tag but the more time-expression picture indicates additional selling price weak spot ahead. I would sit out any in close proximity to-term bounce in MU as the double prime pattern anxieties me.”
Let us test the charts yet again.
In this daily bar chart of MU, under, we can see that shares of MU have built an island top rated reversal by gapping increased in late May well and gapping decreased currently. A retest of the April-May lows seems to be like it could be the subsequent transfer for MU. Charges are again underneath the declining 50-day going regular line. The slope of the 200-working day line is even now adverse.
The On-Equilibrium-Volume (OBV) line has been neutral/constant the past two months. The Moving Typical Convergence Divergence (MACD) oscillator was edging up to the underside of the zero line but now it is much more probably to turn lessen yet again.
In this weekly Japanese candlestick chart of MU, down below, we see a mixed picture. This week’s candle is not plotted nonetheless so we continue to see additional lower shadows than higher shadows. The slope of the 40-week shifting common appears to be neutral.
The weekly OBV line appears to be like like it shows some advancement in May well. The MACD is beneath the zero line but has narrowed in direction of a achievable deal with shorts purchase signal in the weeks ahead.
In this everyday Place and Figure chart of MU, beneath, we can see a potential upside price tag goal in the $93 space.
In this weekly Point and Figure chart of MU, below, we can see the exact $93 value concentrate on as the day-to-day chart.
Bottom line strategy: MU might go on to keep the $65 degree but a near under $65 on greater quantity will tip the scales to the bears. Stay tuned.
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