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MU Micro Technology Trade Setup

Following the recent breakout above the basing pattern (white box). MU (Micron Technologies Inc.) has been consolidating in what appears to be a bullish pennant continuation pattern. A long entry will be triggered on any print of 13.16, assuming that occurs by the end of this week (if not, I will update the trade & decide whether to pull the setup or modify the entry). The MU bullish pennant can be seen clearly on this 60-minute time frame. I have set the buy trigger at any print of 13.16 which is slightly above the pennant & today's previous high.

The suggested (and official) stop for those targeting T2, which is my preferred target), is any move below 12.62. Those only targeting T1 (for a quick trade) should use tighter stops while longer-term traders holding out for the final target, T3 which is the yellow downtrend line, or a possible long-term trade to the 21 area, could use a more liberal stop. MU was highlighted as an unofficial trade setup about two weeks ago in the trading room & again last Tuesday on the breakout above the pattern (charts below).

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Jun 7, 2016 12:51pm|Categories: Uncategorized|Tags: |5 Comments

5 Comments

  1. Gaucho June 23, 2016 10:22 am at 10:22 am

    Hi Randy, @rsotc.
    MU is going up, it has passed the T1,
    It has a very good volumen: today in less than 1 hour, 23.6 M, the avg vol during the las 3M 25.8M
    Regards

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    • rsotc June 23, 2016 11:40 am at 11:40 am

      @Gaucho Yes, Nice move in MU today.sideris548 also commented on it earlier & this was my reply (sorry, I didn’t catch your comment until now):
      I see that MU hit what was the first target today but as the trade exceeded the official stop (and I’ve been behind on updating the trades), it should have been removed & is no longer an official trade so an update won’t be posted. With that being said, if you are long MU, this would be an objective time to either book partial or full profits OR raise stops to protect profits & let the trade ride up to the T2 or T3 levels as it looks fine from a technical perspective right now. I think an idea stop right now would be slightly below the 13.10 support level, say around 13.02-13.05, probably best to wait for a 30 or 60-minute close below 13.10 as well since it might overshoot that level if it comes back in to backtest it. (Correction: I had already updated MU after it exceeded the suggested stop so it is not listed as Active any more).

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  2. sideris548 June 23, 2016 10:23 am at 10:23 am

    Hey Randy did you keep an open order on MU at 13.16?

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    • rsotc June 23, 2016 10:37 am at 10:37 am

      @sideris548 – I see that MU hit what was the first target today but as the trade exceeded the official stop (and I’ve been behind on updating the trades), it should have been removed & is no longer an official trade so an update won’t be posted. With that being said, if you are long MU, this would be an objective time to either book partial or full profits OR raise stops to protect profits & let the trade ride up to the T2 or T3 levels as it looks fine from a technical perspective right now. I think an idea stop right now would be slightly below the 13.10 support level, say around 13.02-13.05, probably best to wait for a 30 or 60-minute close below 13.10 as well since it might overshoot that level if it comes back in to backtest it.

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  3. Gaucho June 23, 2016 5:59 pm at 5:59 pm

    Hi Randy @rstoc, just to understand the logic

    – The post (Jun 7) said “A long entry will be triggered on any print of 13.16”
    – My undestanding was until 13.16 is reached is not an official trade.
    – MU stopped out before reaching 13.16 so when MU stopped out was not an official trade.
    – After reaching 11.58 (Jun 16th) it has been going up.
    – Today in the pre market crossed the 13.16 and became an official trade.
    – So now we are in official trade to be considered.

    Is it correct?

    Regards

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