MU trade ideas
Micron stuck in purgatoryThe stock has entered a consolidation pattern, poised for a breakout to either direction soon.
The trends seem to indicate a possible move to the downside, looking at the MACD and 60-day and 180-day EMAs.
MU has exhausted the rocket fuel it gained from a good earnings report last month, as future estimates have flatlined.
Micron Strong SellMicron is struggling below the 200 day and 50 moving average and could potentially break through the March lows. In march, the stock broke through support trendline and a retest is likely to occur. I am buying January puts in Micron (MU) and am looking for it to retest the lows. After it retest march lows, I will convert my PUT option into a PUT VERTICAL to collect the premium (as to lock some profit).Currently, I bought the January 40 strike Put.
With semiconductor ETF being near the highs and this stock being the middle of the range, I am selling one of the weaker semiconductors stocks. If the stock market rolls over in the next 3 weeks, this trade will do very well as semiconductors are volatile and trade more with greed & fear vs safety/defensive stocks.
MU Downtrend, Showing Weakness at ResistanceNot much to this other than rejection at resistance and bouncing off downtrend line. Expecting a gap down tomorrow so that will probably take off some of the potential profit, but still plenty of room.
Expecting a complex correction for wave b) or X) then fall for YMarket Commentary:
First have an look for the positional trend i shared here previous....if you are a follower of me...and sometimes i will share the counter trend trade also in 15 mins and 1hr...but that is risky ones...so if the trend is bearish or bullish, if i am expecting the correction...book the profit there and wait the correction to end and again go with the trend....DONT TRADE THE COUNTER TRADE SETUP...you will took loss too...try to identify the sort term pull back and the long term pull back after that took small lots in the short term PB with strict stop and go with big lots in the trend side that is long term.
Read the market commentary inside the chart what i shared here carefully and try to learn Elliott waves...otherwise its tough to understand the market commentary and my analysis. I wont give a entry, stop loss and take profit in my chart...it is only for EDUCATIONAL PURPOSE and i am sharing how i am analysing the pair and labelling them according to the Elliott wave theory...I AM JUST SHOWING THE TREND HOW IT MAY GO AND MY VIEW(it may wrong too)..so DON'T FOLLOW BLINDLY MY CHART..take this as a reference and if it correlate to you strategy took the trade as per your strategy...DON'T ASK ABOUT YOUR RUNNING TRADES i wont comment on them and I WONT SUGGEST TO TAKE MY TRADE SETUP.
MU beware of a possible Double TopOn long term, beware of a possible double top which the price offered, aprox 60 usd! If the double top is complete )falling under 30 usd), which is a reversal trend sign, look where the price might fall, near MA200 and fibo level.
MU WEEKLY TRENDLINE BREAKOUTWeekly in uptrend and price has broken trend line on weekly for a bullish pennant pattern
Micron Trade setup $mu Bullish above local resistance @ $45.64
Indicators and volume bullish
Trade with care markets still treacherous
$MU Micron Strong on Down days Upside POC resistance points highlighted on the chart.
Stock was strong on Friday as the market was weak, so any green market days a nice move is expected.
Micron Fibonacci channel Respected $mu
Fibonacci levels well respected as the stock trades within the channel $43-$44 possible if market can stabilize
Short MUTaking short position on MU yesterday. I set cover limit order at $40.70, it might gonna be filled within the next few days.
$MU Micron Upside Targets if market remains GreenMicron (NASDAQ:MU) +5.3% reports Q2 beats with revenue down 18% Y/Y. For Q3, the company sees $4.6-5.2B in revenue (consensus: $4.88B), EPS of $0.40-0.70 (consensus: $0.52), and gross margin of 29.5-32.5%.
Q2 Operating cash flow totaled $2B, down from the $3.4B in last year's quarter.
DRAM revenue was down 26% Y/Y, while bit shipments grew 20% in the period.
For NAND, revenue was up 9% Y/Y, bit shipments grew 20%, and ASPs were up on the quarter in the upper-single-digit percent range.
Adjusted gross margin was 29.1%, above the 27.2% estimate.
Micron ended the quarter with a net cash position of $2.7B. Source Seeking alpha
$Micron bullish into earnings
Reversal has been bullish but end market conditions are not improving, the virus is intensifying
Negative commentary quite possible on earnings call and a lack of clarity on future guidance
Technical factors
MACD had crossed bullishly
RSI in reversal
Stochastic bullish reversal|
Fibonacci Upside targets $46 - $48 \golden pocket sits $50
$MU Bullish setup best entry near 34 targeting 46-47Bullish candlesticks wit oversold indicators .. filled previous gaps but still there are more gaps below at 29.5 and 22
