Micron Technology: Easy Buy and Sell Signals

11:21 08/28/2018

Always pay attention to technical signals. Nine times out of 10 they’ll point you in the right direction. In June 2018 for example, Micron Technology MU  became overbought at its upper Bollinger Band (2, 20). RSI was at its 70-line. MACD was over-extended. Williams’ %R pushed above its 20-line. All confirmed an overbought situation. That was a well-timed sell signal. Eventually, it gave way to a falling knife, which we highlighted in late June 2018. In fact, we noted, “With no real support to speak of until $45 a share at its 200-day moving average, the stock could free fall in a falling knife formation until then.” And that’s exactly what happened. While MU tried to recover along the way, it just kept falling to that $45 target. Interesting to note, the same signals that told us to sell, now told us to buy. Not only did it catch double bottom support just under its 200-day moving average. it also became aggressively oversold at its RSI 30-line, fell to an unsustainable low on MACD. And Williams’ %R (W%R) fell under its 80-line. All of those signals pointed to an aggressively oversold situation. It’s why the stock is beginning to move higher from double bottom support.

This article has been provided by a Chasing Markets contributor. All content submitted by this author represent their personal opinions, and should be considered as such for entertainment purpose only. All opinions expressed are those of the writer, and may not necessarily represent fact, opinions, or bias of Chasing Markets.
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