We reviewed the charts of Micron Technology (MU) on Dec. 6 and we were bearish. Prices struggled for a few days, but recently launched themselves higher.
Let's check and see what I missed.
In this updated daily bar chart of MU, below, we can see that prices held above the 200-day moving average line while the 50-day line continued to rise. The 50-day line is crossing above the 200-day line for what is commonly called a (bullish) golden cross. The On-Balance-Volume (OBV) line continues to rise this month to make a new high, which supports further price gains. The Moving Average Convergence Divergence (MACD) oscillator is in a bullish alignment.
In this weekly Japanese candlestick chart of MU, below, we can see a bullish engulfing pattern earlier this month to kick start the rally. Prices are above the now rising 40-week moving average line. The weekly OBV line shows improvement from the middle of October. The MACD oscillator has crossed above the zero-line for a new outright-buy signal.
In this daily Point and Figure chart of MU, below, we can see a potential price target in the $126 area.
In this weekly Point and Figure chart of MU, below, we see a $135 price objective projected.
Bottom line strategy: Traders could go long MU around $95, risking to $88. The $126 area is our first price target.
