MU has a strong support / resistance line at the $65 mark. On the weekly chart we can see an RSI divergence. The daily chart shows it has a strong possibility of rebounding off support once again.
Traders should watch the ticker at the current price levels and channels. If it pops out of the current channel on the daily chart, traders should take an aggressive long position as a swing trade. If it falls through the support level of $65 then traders should take a short position, and could honestly trade at multiple time and price targets as it will likely fall first fast (as it has cracked support) but then continue to fall for a while longer.
This trade was part of Nancy Pelosi's stock picks at the beginning of the year. But judging how these turned out I am more inclined to say that these were more likely throwaway trades. These trades were on the heels of the NPportfoliotracker Twitter handle being banned. So it feels like this was a juicy piece of meat that she threw into a blackhole for us poor peasants to chase.
With that said the call options that she purchased are due to expire sometime in Jan '23, so there is still quite some time for us to see how this ends up playing out.
I also get the feeling that the wider market selloff is dragging this stock lower.
zAngus
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Good one on getting picked for a Editors Pick. Thanks for sharing your ideas with the group.
Shorting MU if it breaks 65$ seems like a good idea to be bear trapped lol. Look at the fundamentals too... Micron is making money, lots of money. The PE ratio can't go down forever.
Leveraging_P
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@cicatrace, I'm bullish on the stock, I was more speaking in terms of a swing-trade. If it cracks $65 it would likely fall to 60 within a week or so. With a put spread there is profit to be made, even if it recovers after a few weeks. It's important to consider the timeframe of a trade
But Micron seems so undervalued to me, their DDR5 chips will be huge for 5G tech and are already being installed in high-end smartphones. It is pricy at the moment but all new tech usually is. It is like a rare commodity for the tech sector and one of the few companies that produces it. It also reduces energy consumption of the chips compared to DDR4 which is gonna be huge especially for smartphones and EVs. It's tech like this that can truly make a difference. But yeah Micron declined way less than most stocks, which tells us when a sustained rally comes, it could (and probably should, honestly) very well break to new ATHs.
Leveraging_P
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@cicatrace, Fully agree. This is one of those stocks I'm going to DCA in heavy on my long-term account (I keep my swing trading and long-term trading in separate accounts) once the bear cycle starts to wrap up.