Tuesday, June 15, 2010

MU Watch

Memory maker Micron Technology Inc. (MU) has risen 8% intraday with about an hour left before the close on volume running more than 40% above Monday's. There is no news to account for the good news (for bulls, at least).
trendadxpsarppsmacdmacd
trend
stosto
trend
MU $9.64

MU's rise comes with the parabolic sar and Person's Proprietary Signal switching to bull phase, and that macd and fast stochastic also flashing bullish.

The price move breaks sharply above both the near-term multiply-tested resistance set in May and the 20-day simple moving average.

The upward thrust comes as the earnings announcement looms. It is scheduled for June 28 after the close.

The volume spike, rapidly approaching 39 million, would have more credibility if it were to break above the 44 million share level.

Reversal Levels
  • $11.03, +14.4%
  • $9.75, +1.1%
  • $9.64 <== You are here.
  • $8.66, -10.2%
The stock has been trading sideways since early May, the average directional index is low and moving lower, so any directional move to the upside will require strong breakouts. So far today that price has pulled back a bit from the high. After a large upward move, pullbacks often present reasonable buying opportunities -- if they occur on declining volume.

Longer-term, MU has behaved as a typical tech stock. It peaked at $97.50 in July 2000, declined consistant to a low of $1.59 in November 2008, the nadir of the financial collapse, and since has recovered about half of its decline from the 2006 swing high to the 2008 low.

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Disclaimer
Tim Bovee, Private Trader tracks the trades of a private trader for his own accounts. Nothing in this blog constitutes a recommendation to buy or sell stocks, options or any other financial instrument. The only purpose of this blog is to provide education and entertainment. No trader is ever 100 percent successful in his or her trades. Trading in the stock and option markets is risky and uncertain. Each trader must make trading decision decisions for his or her own account, and take responsibility for the consequences.
Abbreviations:
  • psar - Parabolic Stop and Reverse
  • adx - Average Directional Index
  • pps - Person's Proprietary Signal
  • ma20 - 20-day moving average
  • macd - Moving Average Convergence-Divergence
  • sto - Fast Stochastic
About the glance: The colors indicate the state of each signal.
  • trend: Determined by the 5-day moving average, green for up, red for down, yellow for sideways
  • adx: orange for above 30-up, blue for 20-down, purple for in the middle. Red is most prone to whipsaws
  • psar, pps, macd: green for bull mode, red for bear
  • sto: green for overbought, red for oversold, yellow for the neutral zone.

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