Stock of the day: Micron Technology
13 June 2023
In today's market spotlight, let's turn our attention to Micron Technology. Previously, on April 12, we found ourselves below a critical horizontal resistance level at $65 (blue). My outlook at the time was bullish, as I foresaw potential for a bullish breakout and a buy signal. Fast forward to a month later on May 18, we found that our bullish prediction had materialized.
The price broke past the horizontal resistance and climbed notably higher, hitting $75 (green) by the end of May. However, since then, we've experienced a bearish correction with some fascinating price action developments. Interestingly, the $65 mark, which previously served as resistance, is now being tested as a support level. The results of this test so far seem favorable for buyers, as the price has created two hammer patterns (yellow) on the daily chart.
Following these patterns, yesterday marked the formation of a substantial bullish candle. This shows a rejection of the support level, indicating that the support worked in favor of the buyers. From this point, we could potentially see the start of a new bullish wave.
In conclusion, my sentiment on Micron Technology remains positive. I see a buy signal here, as long as we stay above the horizontal support of $65. A breakout would signal a selling opportunity, but the chances of that happening are currently slim.