Early Monday morning I was "reading in" and noticed that China was going to ban chipmaker Micron Technology ( MU) from key infrastructure projects. Our own Alex Frew McMillan discussed this in his latest column.
The share price declined in the pre-market but the price action now tells us a different story.
In this daily Japanese candlestick chart of MU, below, I can see Monday's price action so far. I can see a lower shadow as traders rejected the dip towards $64 where prices broke out from last week. This pullback is not all that unusual.
I can see the same sort of price action on the daily Point and Figure chart below. Here the $64.14 level is key.
Bottom-line strategy: Traders who are long MU from our May 10 review should continue to hold those longs.
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