Will the Bears Remember Micron?Micron Technology hit a new 52-week low in early July, followed by a tepid rebound.
The first pattern on today’s chart is the 50-day simple moving average (SMA). MU is only now returning to this line -- despite broader market being above the 50-day SMA for two weeks. That’s a sign of relative weakness. Could it also make trend followers expect a continuation of this year’s slide?
Second, price action in the last three weeks resembles a bearish flag.
Third, MU tried to make a higher high on Monday versus July 21. But it failed and a shooting-star candlestick was the result. That may suggest the flag is nearing completion and could soon give way to bearish continuation.
Finally, the memory-chip maker had a double-bottom at $66 in May. The recent bounce never even reached that level, which could indicate sellers remain in control of this chart.
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