In this updated daily bar chart of MU, below, we can see a sharp improvement in the chart the past few sessions. MU has rallied and gapped above the declining 50-day moving average line and the declining 200-day average line. The $42-$45 area is potential chart resistance as prices stopped there in February, March and April.
The On-Balance-Volume (OBV) line shows highs in those same months and adds to the idea of potential resistance.
The trend-following Moving Average Convergence Divergence (MACD) oscillator is crossing the zero line from below generating an outright buy signal.
In this weekly bar chart of MU, below, we can see that prices are testing the declining 40-week moving average line.
The weekly OBV line is starting to show a turn to the upside which suggests more aggressive buying.
The MACD oscillator on this long time frame is narrowing towards a cover shorts buy signal.
In this Point and Figure chart of MU, below, we can see the recent rally without price gaps. A tentative upside price target of $57.66 is being projected but we can see resistance in the $42-$44.83 area.
Bottom line strategy: I don't know how to explain it but my gut is telling me not to follow the strength in the broad market averages this morning, and also stocks like MU that have rallied sharply recently to touch resistance. The Point and Figure chart is bullish but it largely ignores time and I think MU needs more time to rebase.