Stock of the day: Micron Technology
18 July 2023
Micron Technology is currently experiencing a promising market situation that warrants our attention. Before delving into the specifics, let's step back and view the broader picture.
Starting from mid-May, the stock was characterized by a head and shoulders pattern, highlighted in yellow. This bearish trend culminated in a sell signal towards the end of June, with the stock price dropping below $65. Despite this setback, the decline wasn't dramatic.
Interestingly, the stock price bounced off a green uptrend line it encountered, redirecting its course upwards. The course of July brought another crucial development - the stock managed to break through the red downtrend line. Currently, it's striving to surpass the $65 mark again, represented by a blue line.
This leads us to the present scenario. One resistance, the red line, has been successfully overcome. The second one, represented by the blue line, is yet to be conquered. The definitive buy signal will be triggered once the stock price closes above the blue area.
Such a development would imply the cancellation of the head and shoulders pattern and an affirmation of the uptrend, courtesy of the bounce from the uptrend line. If the stock price does manage to close above the blue area, a buy signal will be triggered, and the potential target will be set at $75, denoted by the green line.