MICRON Technology Inc. (MU.O) (d-w-m) for Monday (5/8/2017)

The article below is a Daily-Weekly-Monthly (d-w-m)  technical analysis of the End-of-day (EOD) charts  for MICRON TECH ORD (MU.O).   (Updated with new DAILY info)  

I strongly suggest fundamentals first.  To that end I also strongly suggest listening, not only to the financial calls of Micron Tech, but, to the financial calls of competitors and customers as well.  In listening to financial conference calls of Apple Inc. (AAPL), Samsung, Hewlett Packard Enterprises (HPE), and more, we learn Demand  for DRAM and NAND chips is Strong and channel inventory of DRAM and NAND memory chips is really tight.  This tightness is resulting in higher spot market and contract prices, longer term contracts, and exposed customers are attributing lower and missed revenues to lack of parts to produce gadgets.  Hewlett Packard Enterprises (HPE), has admitted offsetting higher prices and lack of DRAM chips by consuming their on hand inventory of chips … and sending price increase letters to HPE customers hoping the price increases will stick.   With no new fabs in sight … one can safely conclude channel inventories will continue to be tight and companies, like HPE will not be able to rebuild on hand inventories against future price increases, or lack of supply.

Despite the wide spread fundamental evidence that  Micron Tech may beat its own increased third quarter (q3’2017) guidance on revenues, earnings, and margins … Mr. & Ms. Fickle Markets can leave Micron stockholders confused and bitter regarding unexplained drops in Micron’s price per share (pps).   That’s where looking at pictures (a.k.a. charts) can help; so, for the rest of the story:

First Please Note: (a.k.a.  disclaimer)  I own Micron Tech shares.  The homework I do, Bull and Bear analysis (long, sell, short) as noted above and below, I do because it’s my money.  I do NOT short stocks.  I do the sell, short homework looking for confirmation (contrarian investing) of adding to my investments, holding on, or selling. In addition, I do the  long, sell, short homework because you can not calculate the Reward/Risk ratio if you don’t.    I am sharing my homework (and opinions), not as a recommendation to buy or sell Micron Tech, but as a hopefully helpful tool to those that can not, for whatever reasons, do their own homework, and I respect that your money is YOURS.   I still strongly suggest that every investor do their own homework.

 MICRON TECH ORD (MU.O)  (Long)
 On Friday, 5/5/2017, the Moving Average Convergence Divergence (MACD) for MICRON TECH (MU.O) just crossed above its signal line.  This is a bullish signal. Currently the MACD is bullish since it is trading above its signal line.  Since the MACD crossed its moving average, MICRON TECH ORD’s price has been unchanged, and has ranged from a low of 27.62 to a high of 28.22.  The MACD is not in an Overbought/Oversold range.  There have been no divergence signals within the last 5 trading days.
MACD Value:    0.257         Signal Line:    0.239
 Currently the Relative Strength Index (RSI) for MU is 57.6572
  ————————————
(1) Analysis of DAILY chart activity through Friday’s (5/5/2017) close at  $28.20
The current trend is up and all orders on the long side may be considered.  The current market price activity is Strongly Bullish and suggests favorable trade opportunities on the long side.  If already holding long positions, look to take partial profits on any retracement to 26.37.   Traders with remaining long positions, after profit taking, should consider placing capital conserving stops in the region of 26.37.   Be prepared for a potential short term price pull back to the 27.44 area.
   Suggested placement of capital conserving stops:
If Long, exit all contracts at:    26.37
If Short, exit all contracts at:     28.38
(1.a) Additional DAILY chart info:
  • Overall, the bias in prices is: Upwards.
  • Short term: Prices are moving.
  • Intermediate term: Prices are trending.
(1.b) DAILY chart price projection ranges (5/8/2017 – 5/12/2017):
  • The upper projected target is: 29.83.
  • The lower projected  target is: 26.76.
  • The projected closing price is: 28.29.
  • Note: the above DAILY chart price projection ranges are for reference only, and can be easily exceeded by Mr. & Ms. Fickle Markets.
  ———————–
mu 20170505d
Chart 1: Micron Tech, Daily, EOD, O-H-L-C w/Resistances (r2, r1), Pivot Point (PP), and Supports (s1, s2).
  •   ———————–
(1.c)  Micron Tech (MU.O) 
(1.c.1)  Chart #1 (above, daily, PP-Sup-Res) for Monday (5/8/2017)
  •   :: Pivot point   28.01
  •   Support (s1)  27.81       Support (s2)  27.41
  •   Resistance (r1) 28.41   Resistance (r2)  28.61
  •   Simple Moving Average (Close 50):   $26.90   (up trend)
  •   Simple Moving Average (Close 200):  $20.85   (up trend)
(1.c.2)  Chart #1 (above, daily, PP-Sup-Res) for Tuesday (5/9/2017)
  •   :: Pivot point   27.80
  •   Support (s1)  27.54       Support (s2)  27.01
  •   Resistance (r1) 28.33   Resistance (r2)  28.59
  •   Simple Moving Average (Close 50):   $26.99   (up trend)
  •   Simple Moving Average (Close 200):  $20.93   (up trend)
(1.c.3)  Chart #1 (above, daily, PP-Sup-Res) for Wednesday (5/10/2017)
  •   :: Pivot point   28.59
  •   Support (s1)  28.28       Support (s2)  27.75
  •   Resistance (r1) 29.12   Resistance (r2)  29.43
  •   Simple Moving Average (Close 50):   $27.10   (up trend)
  •   Simple Moving Average (Close 200):  $21.01   (up trend)
(2) Analysis of WEEKLY chart activity through Friday’s (5/5/2017) close at  $28.20
The current trend is up and all orders on the long side may be considered.  The current market price activity is Strongly Bullish and suggests favorable trade opportunities on the long side.  If already holding long positions, look to take partial profits on any retracement to 24.81.  Traders with remaining long positions, after profit taking, should consider placing capital conserving stops in the region of 22.64.   Be prepared for a potential short term price pull back to the 25.04 area.
   Suggested placement of capital conserving stops:
If Long, exit all contracts at:     21.74
If Short, exit all contracts at:     29.87
(2.a) Additional WEEKLY chart info:
  • Overall, the bias in prices is: Upwards.
  • Short term: Prices are moving.
  • Intermediate term: Prices are trending.
  • Note (2.a.1): this chart shows extraordinary price action to the upside.
  • Note (2.a.2): weekly prices are vulnerable to a correction towards 21.21.
(2.b) WEEKLY chart price projection ranges (5/8/2017 – 5/19/2017):
  • The upper projected  target is: 31.40.
  • The lower projected  target is: 25.70.
  • The projected closing price is: 28.55.
  • Note: the above WEEKLY chart price projection ranges are for reference only, and can be easily exceeded by Mr. & Ms. Fickle Markets.
  ———————–
mu 20170505w
  Chart 2: Micron Tech, Weekly, EOD, O-H-L-C w/Resistances (r2, r1), Pivot Point (PP), and Supports (s1, s2).  Note the formation of “the Claw” represented by the Resistances (r2, r1),  and Supports (s1, s2) converging towards the Pivot Point (PP), … indicating that a pps move is near … to determine if that move is up or down, more homework is needed.
  ———————–
(3) Analysis of MONTHLY chart activity through Friday’s (5/5/2017) close at  $28.20
The current trend is up and all orders on the long side may be considered.  The current market price activity is Strongly Bullish and suggests favorable trade opportunities on the long side.  If already holding long positions, look to take partial profits on any retracement to 16.17.   Traders with remaining long positions, after profit taking, should consider placing capital conserving stops in the region of 11.50.   Be prepared for a potential short term price pull back to the 22.87 area.
   Suggested placement of capital conserving stops:
If Long, exit all contracts at:      9.35
If Short, exit all contracts at:     29.87
(3.a) Additional MONTHLY chart info:
  • Overall, the bias in prices is: Upwards.
  • Short term: Prices are moving.
  • Intermediate term: Prices are trending.
  • Note (3.a.1): this chart shows extraordinary price action to the upside.
  • Note (3.a.2): monthly prices are vulnerable to a correction towards 20.37.
(3.b) MONTHLY chart price projection ranges (5/8/2017 – 6/30/2017):
  • The upper projected  target is: 36.02.
  • The lower projected  target is: 21.11.
  • The projected closing price is: 28.56.
  • Note (3.b.1): the above MONTHLY chart price projection ranges are for reference only, and can be easily exceeded by Mr. & Ms. Fickle Markets.
  • Note (3.b.2): Market conditions unrelated to Micron Tech’s actual performance, such as the  June 13-14*FOMC meeting (potential rate increase in the Fed overnight banking rates range to 1.0% to 1.25%) leading into June’s third Friday of the month Quadruple Witching (6/16/2017) are two of the many scenario analysis conditions contributing to the MONTHLY chart price projection ranges noted above.
  • ———————–
mu 20170505m
Chart 3: Micron Tech, Monthly, EOD, O-H-L-C w/Resistances (r2, r1), Pivot Point (PP), and Supports (s1, s2).  Again, note the formation of “the Strong Claw” represented by the Resistances (r2, r1),  and Supports (s1, s2) converging towards the Pivot Point (PP), … indicating that a pps move is near … to determine if that move is up or down, more homework is needed.
  ———————–
  I do not know if you get to listen to Conference calls …  It’s YOUR money.  I would highly suggest, and always recommend, doing so.    Since this blog is about Micron, I suggest checking out Investor Calendar for Micron Technology (MU) Here:

 

—  Monday, 5/8/2017   thru    Friday 5/12/2017  ——

Hope the above MICRON TECH ORD (MU.O) calculations for Monday, 5/8/2017  help your investing and trading planning today …

 

Advertisements

21 thoughts on “MICRON Technology Inc. (MU.O) (d-w-m) for Monday (5/8/2017)

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s