MU Earnings Play (Brad Reed Jan6,2015)If MU gaps up, it is a perfect gap n go. If it gaps down, it will be a retest gap. To learn to trade these strategies for free, go to www.RealLifeTrading.com
MU
MU long term predictionPossible change in trend since support has been reached, with a potential breakout once resistance is reached followed by a steady bullish trend.
MU - RSI Negative Divergence and other sell signsAfter a fantastic run from 21 to 32, now it had attempted to cross 33 for the second time.
Usually on 2nd/3rd attempt the price goes down. With negative divergence on RSI/CCI , i suspect the price will dive to long term trend support and fill the gap if a large slide happens. MACD and RMI are on top as well giving downside potential. Note that previous 3-5% push had larger volume - last 4.5% push had less volume.
If goes below 31.71 i would say the trend change is confirmed with a price target of 29+, where i see a good buy zone should fundamentals stay in tact and no bad news coming out. Closing above 33 and breaking 34 would indicate a break of trend and would violate the idea, but i would expect it to happen on a huge volume and with a large push due to some positive news.
Micron Technology [MU] in a bearish modeFor now even good earnings failed to change the trend after it broke the previous trend support line . Latest sessions bounced off 150 DMA, but there may be some elliot wave type of action pushing the price lower for now. Also it covered a gap from some time ago and for now is below the middle bolinger that has been a good indication of a bearish trend for this stock. Unless surprising news, no major catalysts in terms of tech analysis (unless it was a 3rd elliot wave, but i won't bet on it). it is close to a know support level above 20, going below would lead to a possible sell off.
