Believe in insider trading and that the market is smarter than you. If you believe this, you believe in the charts. Charts do not lie, they are only misunderstood.
Ok, so anyway Im just putting charts of all 100 things i follow. I know there are many good micron charts, so I'd recommend looking at those too.
These lines were all here before the trend touched them after the drop from 63.53 in march. Not after. What this means is that the movement is not so much predictable to the t, but it is easy to follow and gauge where the good areas are.
We are not testing the .618 after failing to pass into new highs and hold the .75
What I now want to see is the price hold here now that it has found resistance on the 50 day MA.
My initial though for a buy point was the green line (53.83 and 52,81) with 50% buys on each. As it is now, If my money was in MU, I would sell out and wait to see.
Im starting to feel that the next two buy spots seem to be 51.62 and 50.17 for the next run upwards towards at least 57.00.
But based on how much people froth at the mouth over micron, I think from 50.17-50.67 well see a bull repeat of what we saw last month.
Oh yeah i forgot to look at things like the report (I just looked at it while writing this). It is kind of funny how i've looked at stocks for about a month and it took me 2 days to figure out that its more often than not, its good to sell around reports, even when the report is good.
Take care yall
From this idea it seemed to make sense. Everyone is looking at something. Trading is not about being right, trading is about trading along the patterns.
The idea that resistance becomes support and so on (in my mind) comes from:
1. The idea that people want to retain profits and not sell back out at a loss. So they will put a sell on the books around where they bought in, in hopes to get sold back out when the prices comes back to test.
2. The idea of price testing. When looking at charts it is noticeable that prices will often come back to the lowest point they they were at. So for example with Micron. We see on the day chart that there is a HUGE amount of price action all in one area. And now we are under that area. So there will be many people still holding the stock from that point. This will make it hard to pass this area, but ALSO! it means that if we DO pass this area, that it is a significant indicator of a bullish trend forming (upwards movement).
3. People often do not go 100% at one time with their positions. What this means (TO ME) is: Lets say that someone buys 50% in at 57 and the price drops. What people will do at times is put the other 50% (of position) where they think it will bounce upwards and then try to sell out their position at the starting point. So in this case if we put a 50% (remaining amount) buy at 53. If we sell out at 57 (before the big resistance) We will be making ~8% on 50% and selling out the other 50% (from 57) at no loss. So we have effectively made 4% profit on our total amount. So the bag holders (people who are holding after a dip) want to sell to stop their position at a no loss no gain, but also want to gain profits in the mean time on that same cycle.
4. People will put their sells under what they normally see as resistance in order to get sold out. a word similar to this action is undercutting. My fib retracements actually have the resistance points slightly above 57. One is at 57.13 and another around 57.30. So i say 57, because i want to get sold out and not be greedy. Because if it fails on that cycle, you may not see your price range hit again for a while or a long time. Thus forcing one to take a loss.
The best way to look at trading is in cycles and that the price is constantly tested. This is why indicators are important. We want to know what others are looking at because we are trading with them, not against them.
TL;DR 57 is big resistance. In my opinion, It is better to sell there and buy back in past the resistance, because by passing such a significant area, we have our sign that the price will continue to rise.
As someone who prefers charts over almost any other piece of information, I love and hate to say this (I really do) but, "it's Micron!" In a good way of course!
I remember checking my ta with others after the recent bull run up. I haven't checked it yet, but it would be funny, yet unsurprising if everyone had the same TA, just like the last time. I like Micron traders on here.