Stock of the day: Micron Technology

In today’s stock of the day, we have a freshman – Micron Technology. We did mention this instrument in our videos but never in a written piece. Let’s make this first time stand out.

On MU, we see a very interesting buy signal. The positive sentiment is coming from the fact that the price escaped from the rectangle (yellow) to the upside. It means that the correction is over and we are ready to start another upswing. It also means that there is great demand as the correction was flat and the price was held on high levels with confidence.

Should we trust the technical analysis here? I don’t see why not. Few months ago, Micron created a beautiful wedge (green), which resulted with a breakout to the upside. In addition to this, there was a really nice false breakout (orange), which gave us fuel for a movement in the opposite direction (to the upside). We also can see that the red uptrend line is respected with amazing accuracy.

All that allows us to think that the sentiment for Micron is positive and in the nearest future, the price should be aiming higher.