Technical Overview
1. Price Action (Range-bound, Resistance Zone)
The chart shows strong resistance around $117–$120 (highlighted in red). Price is now testing the top of this year-long horizontal range after a sharp rally off the lows (~$70).
2. RSI (Overbought Condition)
RSI is above 77 – classic overbought territory. Historically, RSI spikes above 70 near this level have preceded short-term pullbacks. Divergence is not yet confirmed, but we are at a level where previous rallies reversed.
3. MACD (Momentum Peaking)
MACD is strongly positive, but the histogram is showing signs of slowing momentum.
4. Volume (Not Convincing Yet)
Volume has not exploded on the current move up, suggesting buyer exhaustion near resistance. Previous tops around this level saw higher volume spikes, which are absent now.
What's next?
If MU (Micron Technology) cleanly breaks above the $117–$120 resistance zone on strong volume and confirms a breakout, we are no longer just playing range-bound mean reversion — we’re talking trend continuation. So let’s project what’s in it for us on the upside.
What Happens if MU Breaks Out?
1. Massive Base Breakout
The stock has been consolidating in a broad 14-month horizontal range. A breakout from such a large base is fuel for a sustained trend — “the bigger the base, the higher the space.” That means the next leg could be powerful.
2. Fibonacci Extension Targets (From Previous Peak to Trough)
Using $155 (previous high) and $65 (cycle low):
Level Price Target
1.0 (prior high) $155
1.272 ~$170
1.618 ~$185
These extensions align well with the measured move, giving confluence around $170–$185.
3. Volume Confirmation Will Matter
For this breakout to be sustainable, you’ll want to see:
Volume spike
RSI > 70 but holding
MACD broadening, not crossing down
A failed breakout would just become a bull trap.
4. Sentiment Can Add Fuel
AI/semis are already in a macro bullish narrative. A fresh breakout could trigger:
FOMO from institutions
Short covering
Options gamma squeeze
Strategy If Resistance Breaks
Buy on retest of $120 with stop just under the breakout.
Aggressive entry can ride momentum, but needs tight stop under $117.
First target: $135–140,
Mid-term: $155,
Final: $170–185 (if the full extension plays out).
“Markets move based on perception, not reality.”
A clean break above $120 changes perception entirely — from a range play to a trend breakout. If that happens with volume and conviction, you lean in, ride it, and trail stops like a sniper. Because when a stock clears a 14-month ceiling, it's not breaking out for nothing.
1. Price Action (Range-bound, Resistance Zone)
The chart shows strong resistance around $117–$120 (highlighted in red). Price is now testing the top of this year-long horizontal range after a sharp rally off the lows (~$70).
2. RSI (Overbought Condition)
RSI is above 77 – classic overbought territory. Historically, RSI spikes above 70 near this level have preceded short-term pullbacks. Divergence is not yet confirmed, but we are at a level where previous rallies reversed.
3. MACD (Momentum Peaking)
MACD is strongly positive, but the histogram is showing signs of slowing momentum.
4. Volume (Not Convincing Yet)
Volume has not exploded on the current move up, suggesting buyer exhaustion near resistance. Previous tops around this level saw higher volume spikes, which are absent now.
What's next?
If MU (Micron Technology) cleanly breaks above the $117–$120 resistance zone on strong volume and confirms a breakout, we are no longer just playing range-bound mean reversion — we’re talking trend continuation. So let’s project what’s in it for us on the upside.
What Happens if MU Breaks Out?
1. Massive Base Breakout
The stock has been consolidating in a broad 14-month horizontal range. A breakout from such a large base is fuel for a sustained trend — “the bigger the base, the higher the space.” That means the next leg could be powerful.
2. Fibonacci Extension Targets (From Previous Peak to Trough)
Using $155 (previous high) and $65 (cycle low):
Level Price Target
1.0 (prior high) $155
1.272 ~$170
1.618 ~$185
These extensions align well with the measured move, giving confluence around $170–$185.
3. Volume Confirmation Will Matter
For this breakout to be sustainable, you’ll want to see:
Volume spike
RSI > 70 but holding
MACD broadening, not crossing down
A failed breakout would just become a bull trap.
4. Sentiment Can Add Fuel
AI/semis are already in a macro bullish narrative. A fresh breakout could trigger:
FOMO from institutions
Short covering
Options gamma squeeze
Strategy If Resistance Breaks
Buy on retest of $120 with stop just under the breakout.
Aggressive entry can ride momentum, but needs tight stop under $117.
First target: $135–140,
Mid-term: $155,
Final: $170–185 (if the full extension plays out).
“Markets move based on perception, not reality.”
A clean break above $120 changes perception entirely — from a range play to a trend breakout. If that happens with volume and conviction, you lean in, ride it, and trail stops like a sniper. Because when a stock clears a 14-month ceiling, it's not breaking out for nothing.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.