Micron(MU) Ceiling: A Technical Thesis for a Short Position

This trade is a strategic short on Micron Technology (MU), grounded in a technical analysis thesis of price rejection at a significant trendline resistance. The core premise is that the strong upward momentum has exhausted itself as the price has encountered a formidable ceiling, signaling an imminent corrective move. The trade is designed to capitalize on the anticipated retracement to a key underlying support level.

The price of MU has been on a strong ascent, but this rally has recently culminated in a critical inflection point. As shown by the red arrow on the chart, the price has failed to convincingly break above a major resistance trendline, which has been respected over a long-term horizon. This rejection is a high-probability bearish signal, indicating a shift in market control from buyers to sellers.

Trade Idea:

Entry Signal: The short position is initiated at the point of rejection, precisely where the red arrow is located.

Exit Strategy: The primary profit target is set at the strong support level, marked by the green support line.