GOOGL & MU

This is a Trendy Stock Charts quick hits article. The purpose of a quick hits article is to really take a peek and check on the progress of a previous analysis for the stock. This quick hits update will cover the ticker symbols GOOGL & MU. Those ticker symbols are for Alphabet and Micron Technologies, respectively.

As a Trendy Stock Charts member, remember that if there are ever any significant deviations from expectations, do not hesitate to stop by the Idea Chamber and ask for an updated analysis on the company and its charts. There are times where the news is so great it does affect the share price to a significant degree that is not in alignment with expectations.

So let’s check in on the activity for 2 previous companies I’ve written about – GOOGL & MU.

Alphabet (GOOGL)

Alphabet (GOOGL) and Facebook (FB) are the internet advertising giants. It was estimated that online advertising was up approximately 23% in the recent quarter. These 2 companies stand to benefit the most as they receive the majority of online advertising revenue.

The first chart for Alphabet (GOOGL) is a 1 year daily candlestick chart. The Fibonacci Extension Tool I placed on it is a little hard to read. The 100% Target line amount is $983.27 and the 161.8% Target Line (also referred to as the Golden Ratio) is 1,009.78; GOOGL’s share price appears poised to make an attempt at its previous highs.

Short-term, Alphabet (GOOGL) appears poised to make a run at its previous 52 week high. In reaching its short-term Golden Ratio, its share price will reach the $1,009.78 price target.

GOOGL’s share price appears to have minimal downside risk at this point. When I say minimal, I anticipate less than 10%. The support area from the Rising Window candlestick pattern is less than 10% lower than the current price for GOOGL. GOOGL’s share price did not yet re-test the support area from the Rising candlestick pattern. A bad earnings report would be my guess of how its share price does re-test the Rising Window candlestick pattern support area. Or possibly market conditions deteriorate over the next couple of weeks. Either way, that price area is the area to re-purchase any sold shares or to purchase additional shares.

This next chart is a 3 year weekly candlestick chart. This Fibonacci Extension Tools overlaid on this chart provide for some medium-term price targets.[s2If !current_user_can(access_s2member_level1)]……

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If you are not a Trendy Stock Charts member, consider joining today! There are several different subscription plans available.[/s2If][s2If current_user_can(access_s2member_level1)] This chart also suggests that any pullback towards the $900 – $925 range before before breaking above its previous 52 week high is a buying opportunity.

The Golden Ratio (161.8% Target Line) for the black Fibonacci Extension Tool provides for an $1,189.51 price target. This is a price target that would be achieved in less than a year’s time. More than likely, this would be an approximate 6 month target, maybe less. The probability of reaching the 161.8% black Target Line is very high in my opinion.

Micron (MU)

Next up is Micron Technologies (MU). Its first chart is a 3 year weekly candlestick chart to check on the status of a stock whose share price has almost quadrupled over the last year. During this massive run-up, MU’s share price has offered a few decent buying opportunities to jump in on the trend.

But in order to take advantage of those buying opportunities, you could not hesitate when MU’s share price pulled back to a support area. Thats how it is wth most trades. You have to buy at the support areas and then analyze price action that follows to make sure the game plan is still in place.

Sometimes a stock doesn’t always rebound at the first support area. That is why I like to use scale-in purchases. If one support area fails, you make another scale-in purchase at the support area below.

Back to MU’s 3 year weekly candlestick chart. 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.

The previous 2 weeks saw some selling volume that was heavier than normal trading volume. Those selling volume spikes could be an indicator of a consolidation period in which we’ve identified the support area around $25.50 – $26.50.

Now that MU has broken back through the $30 price level though, that level could offer significant support. Depending upon your risk level, you may want to make a scale-in purchase around the $30 area and then make another at the $25.50 – $26.50 support level below if the pullback does materialize.

Summary

GOOGL & MU appear poised for higher prices, and their current weakness is only an opportunity. Each may provide a slightly better opportunity, but waiting for that perfect pullback in this strong-rallying market does not always end well. Corrections have been shallow. Think Flat wave patterns.

The significant rallying power of the market has me posting a link to this article again…I think it definitely required a re-read! Especially Bullish Scenario #2.

“NASDAQ Composite 11/13/2016 – The Trump Rally”

Good luck trading!

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