MU – Micron

Here is a 1 year daily chart for Micron and a 2 year daily chart to look at an old resistance area.

The Fibonacci Extension Tools suggest fading the trade around the $20 mark. The bottom of a resistance area from a previous Falling Window sits at $20.60; I would definitely be fading the trade at this level and locking in some gains.

Maybe MU reaches for the $21.50 area after a pullback to the trendline. You have to start thinking about the cost benefit of holding the stock after a nice gain. Is it worth trying to get the extra buck when there is a possible couple buck decline? The trendline sits around the $18 area.

Since the rally is extended now though after the election and yesterday the NASDAQ formed a Doji, I might not be as quick to repurchase shares during a pullback. I would rather be inclined to sit back and watch the consolidation from the sidelines for a bit…