MU: A Dangerous Inflection Point! (D&W charts).

27 ביוניDaily Chart:

On the daily chart, MU is trading within an ascending channel, a bullish indicator suggesting an uptrend continuation. The recent price action has tested the lower boundary of this channel, around 133.30, a critical support level that was a previous resistance, as evidenced by the red arrows – another example of the Principle of Polarity. The price rebounded from this support, highlighting its significance.

A sustained move above this level could push the stock higher within the channel, potentially targeting the recent highs around 157.41. The only thing missing is a clear bottom signal (there isn't any so far). However, a break below 133.30 could signal a potential shift in trend, leading to a deeper correction in the weekly chart.

Weekly Chart:

In the weekly chart, a shooting star pattern is observed, a bearish reversal signal that often appears at the top of an uptrend. This pattern indicates a potential top, especially if followed by a bearish confirmation in the subsequent weeks.

The current weekly close below the low of the shooting star reinforces the possibility of a correction (however, this week isn’t over yet). If the price continues to decline, the next significant support level to watch is the 21-week EMA, which has previously acted as a dynamic support.

Conclusion:

Integrating both time frames, MU is at a crucial juncture. The daily ascending channel suggests a bullish bias, but the weekly shooting star pattern warns of a potential correction.

If the price holds above the key support of 133.30 on the daily chart, it could resume its upward trajectory within the channel. However, failure to maintain this level might lead to further downside, aligning with the bearish implications of the weekly shooting star.

Fow now, we should monitor these levels closely to gauge the stock's next move, balancing the bullish potential of the ascending channel with the caution warranted by the shooting star pattern.

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Remember, real trading is reactive, not predictive, so let's stay focused on the key points described above and only trade when there is confirmation.

“To anticipate the market is to gamble. To be patient and react only when the market gives the signal is to speculate.” — Jesse Lauriston Livermore

All the best,
Nathan.