MU has formed a very nice base and is breaking outCall it what you want, double bottom, triple bottom, possible cup and handle... Resistance has now turned into support. Now the question is, how impulsive will this rally be, or are we going to consolidate further during the summer and create a handle?
The measured move of the triangle/double bottom hasn't been reached which leads me to think this might become a cup and handle pattern in the weeks/months to come. But who knows, we could also go straight up from here.
I will be willing to add shares to my long position on Micron in the low 60s. 62-63$ would be a good place to buy more shares if the stock has a correction this summer. There is a macro 2.618 fib level at around 59.20 on the log scale but it has already been consolidated on and backtested as support. There is a chance we might revisit it this summer, but we could also make a higher low a couple of dollars higher.
On the monthly timeframe there is some interesting stuff to note:
The 62-63 dollar level coincides with a macro trendline and the bottom of the weekly EMA ribbon. The top of this ribbon is at around 68$ which is our support right now. If we overshoot the 62-63 dollar level to the downside, I expect 59$ to hold. If it doesn't then we could go as low as 44$ but I do not think this is the most likely scenario.
Keep in mind this is a long term swing trade/investment idea. I don't scalp or do options/leverage trading. I try to buy good companies for the long run when they are undervalued by the markets.
