Opened (Margin): MU January 21st 69/97.5 Short Strangle... for a 2.22 credit.
Comments: Earnings announcement volatility contraction play with rank/implied at 79/59. 2.22 credit on buying power effect of 8.07 (on margin); 27.5% at max as a function of buying power effect; 13.8% at 50% max.
Will look to take profit at 50% max; manage sides on approaching worthless/side test.
MU trade ideas
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Cup and HandleCup appears to be forming.
I marked mid cup on the chart which is a source of support. In a healthy cup and handle , the handle low should be above mid cup. This handle looks a bit iffy right now and not well formed, but I took a stab at finding it. You may see a better handle that I do (o:
Targets for this pattern are based on the depth of the cup using fib levels. Cup depth is 31.29.
MU looks to have been making a run up and hit a the bottom of a prior gap and turned back down. The top and bottom of a gap can be a form of support if price is above the gap, or resistance if price is below the gap. Sometimes these support and resistance levels become stronger the longer the gap remains in the chart. If price is above a gap and starts filling the gap, it is possible price will go to the bottom of the gap in hopes of finding support. I've noted this is especially true if it is a new stock or price is at newer highs, as there is no recent price action in or before the gap to provide support. For example, a stock such as PG may find support on a pull back within a gap as it is an older security with a lot of chart history and a security like UPST may have more trouble finding support when it was at it's highs as there was no prior price action in the gap.
Long top wicks can point to areas of resistance and long candle tails/shadows can point to support.
Stocks can't go to heaven and there is always going to be a top, eventually where price will turn down.
No recommendation
Short interest is low and negative volume in high
$MU sniper edition #4*This is not financial advice, so trade at your own risks*
*My team digs deep and finds stocks that are expected to perform well based off multiple confluences*
*Experienced traders understand the uphill battle in timing the market, so instead my team focuses mainly on risk management*
Recap: My team entered $MU at $72.92 per share. Our first take profit is $92.
My team averaged up on our position today at $82.5 per share bringing our share average up to $77.71.
OUR FIRST ENTRY: $72.92
OUR 2ND ENTRY: $82.50
FIRST TAKE PROFIT: $92
2ND TAKE PROFIT: $103
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Micron Technology for short term respite. MUFibtime suggest a drop over the next month to month and a half. This is a guess as markets can never truly be timed. Time after all is not a continuum and has ebbs and flows like a river. We just simply do not notice them. Here believing end of an A within a B within a B. Divergences happened, momentum shifting, 5 Wave impulse confirmed. 0-2 line not shown, but we are certain to be heading down on this one.
We are not in the business of getting every prediction right, no one ever does and that is not the aim of the game. The Fibonacci targets are highlighted in purple with invalidation in red. Fibonacci goals, it is prudent to suggest, are nothing more than mere fractally evident and therefore statistically likely levels that the market will go to. Having said that, the market will always do what it wants and always has a mind of its own. Therefore, none of this is financial advice, so do your own research and rely only on your own analysis. Trading is a true one man sport. Good luck out there and stay safe!
MU Rising Wedge BreakdownMU is within a rising wedge
Rising wedges are a bearish indicative pattern
I am suggesting a collapse down to a stronger area of support to manage this rising wedge
The other scenario is that this rising wedge breaks out to the bullish side, but for the consistency of chart pattern expertise we will stay with the bearish approach, which is considered appropriate.