MU was recently posted as an objective short entry at top of wedge (15.26) on Sept 6th. Prices went on to overshoot the wedge but divergences persist. It is not uncommon to see prices with a wedge pattern, bullish or bearish, to overshoot the wedge just before reversing and breaking down in the expected direction of the pattern. However, we’ve also seen an unusually large number of textbook short patterns breakdown recently only to have prices move sharply high back within the pattern, i.e.- false breakdowns or bear-traps. Therefore, a suggested stop on a move or close above the Sept 12th high of 16.85 should help mitigate any losses on this trade should MU continue to move higher. Updated daily chart.
