9/13/2017 – Micron Technologies (MU) & The Energizer Bunny
If you have ever seen a commercial for Energizer Batteries, it most likely included a pink rabbit. The rabbit uses Energizer Batteries for its power supply. It uses the power to keep beating a drum as the commercial voice-over states "Energizer batteries keep going, and going, and going.....it kind of reminds me of the share price for Micron Technologies (MU).
I last wrote about Micron Technologies (MU) back in June. The previous article can be quickly accessed here:
In the article, I noted that Micron's share price was seeing some resistance in its uptrend. Based on the resistance, I stated:
The confluence of Target Lines from the Fibonacci Extension Tools provide for some resistance at the current share price levels. If MU's share price does see resistance and pulls back a little further, a good support area to purchase shares is around the $25.50 - $26.50 price area.
Let's see how that recommendation fared.
Micron Technologies (MU)
This first chart for Micron Technologies (MU) is a 2 year weekly candlestick chart. I left the gray shaded box from my June Micron Technologies (MU) update.
During the week of August 7, 2017, MU's share price pulled back as I anticipated in the June article. However it only hit a low of $26.85 and missed the top end of my range by $0.35, not too bad.
For some of the newer members, the gray shaded box on most charts I publish represents where I think the best scale-in purchase area will be during that stock's pullback or anticipated pullback.
Now that Micron Technologies has rebounded from the scale-in purchase area, it's time to re-calculate upside price targets.
MU - Price Objectives
So is the share price for Micron Technologies (MU) going to keep going, and going, and going? I want to look at this from not only a long-term perspective, but also an Elliott Wave perspective.
20 Year Monthly Chart
This first chart is a 20 year monthly candlestick chart. I've illustrated what I think is a large Bullish Impulse wave pattern currently in process.
According to the MACD Histogram, the buying momentum in the current uptrend is reading higher than the peak during Wave 1. That is a definite bullish sign. It confirms that MU's share price should be in the process of developing a Wave 3 in a Bullish Impulse wave pattern. The Bullish Impulse wave pattern is an investor's best friend.
While the 100% Target Line area may provide some stiff initial resistance, any pullbacks from that area are purchasable. When you sell shares at a resistance area like the $40.74, look for an approximate 10% pullback if you have troubles placing Fibonacci Retracement Tools on a chart.
6 Month Daily Chart
While the $40.74 price area may offer resistance before year's end, let's look at some shorter-term price targets. This chart is a look at some shorter-term price objectives using a 2 year daily candlestick chart.
This 6 month daily candlestick chart shows a possible trading opportunity around the $37.50.
Remember that while there are shorter-term trading opportunities, always maintain a core position on a stock where big things are expected.
MU - Point & Figure
The price objectives for the 2 different Point & Figure charts are as follows:
High/Low Point & Figure Chart - $48 bullish price objective
Closing Point & Figure Chart - $21.50 bullish price objective (met)
The High/Low Point & Figure Chart indicates a possible push higher than the 100% Target Line from the 20 year monthly chart before than leg of the uptrend corrects. As MU's share price approaches the $40.74 price area, consider monitoring the stock daily to see if a move towards the $48 is possible before a pullback.
Micron Technologies (MU) - Summary
My very first article for Micron Technologies (MU) was a member request asking if MU's share price could double. MU's share price was in the $8.50 range at the time. I said yes it could. Matter of fact, it seems like I talk about a double in almost every major article I write for Micron. The share price for Micron Technologies (MU) does just keep going. And the outlook over the next year remains very bullish. Maybe it is powered by Energizer batteries.
Reaching the Golden Ratio (161.8% Target Line) on the long-term 20 year monthly chart involves almost another double. This is my expectations for the next year.
As Micron Technologies (MU) share price approaches the $40.74 resistance area, a trade set-up may be developing. Drop me another request to calculate the pullback areas. The goal of any trade would be to sell shares above the $40.74 price level and then repurchase them back on a pullback back to the $40.74 area.
On deck: Bank stocks...