Stock of the day: Micron Technology

Stock of the day: Micron Technology
Today, we provide an update on the situation with Micron Technology, which we previously analyzed in early August 2022. At that time, the price was below a key resistance and we saw a promising opportunity to sell. This is how we concluded our previous analysis:
“As long as the price stays below the green line, the sentiment is negative, and the current test seems like a great occasion to sell with a very desirable risk-to-reward ratio. On the other hand, if the price climbs back above the green area, it would cancel the negative sentiment and help to bring a long-term buy signal.”

That was a great call as in the following weeks, the price moved south, reaching new lows in September and December. However, it seems that this trend may be coming to an end as MU is now frequently testing the resistance, indicating that it may break out and start an upswing. The formation marked with a yellow color is an inverse head and shoulders pattern, which may be the start of a new bullish wave.

All we need for a proper buy signal is a breakout of the neckline and, at the same time, the crucial resistance level at $65 (orange). If the price closes above this area for a day, it would be a certain signal to go long, and in my opinion, this should happen pretty soon.
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