Stock of the day: Micron Technology

In today’s piece we have Micron Technologies, which is currently in a very interesting spot, with price action showing us the scenario for the upcoming months.

The weekly chart shows us a very promising bearish setup – a double top formation (yellow). The double top was activated in June when the price broke its neckline (green). Currently, after a few weeks, the price is back in this area and is testing the neckline as the closest resistance.

Worth mentioning is that the green area is strengthened by the fact that these are also tops from 2018 – in general it looks like a proper S/R area (support/resistance).

As long as the price stays below the green line, the sentiment is positive and the current test seems like a great occasion to sell with a very desirable risk to reward ratio. On the other hand, the price climbing back above the green area would cancel the negative sentiment and would help to bring a long-term buy signal.