What a secular bullish trend looks like: Micron (MU)
A secular bull market is a long-lasting shift in an industry that leads to substantial growth over a long period of time (crypto/electric vehicles/semi-conductors/e-commerce, etc)
Micron is a good example of a stock in an industry that's in a secular bull market and has some great classical charting patterns on a short term (daily) and long term basis (monthly+).
Darvas Box Theory:
The Darvas Box Theory is a momentum strategy that highlights periods of consolidation followed by trending bursts, which establish a new price level and lead to periods of consolidation.
Fractals:
Fractal patterns are self-repeating and have similar structure when viewed at different time intervals.
Micron is at an interesting spot here as it tests its former April 2021 highs and January 2000 highs, just under the $100 level - also known as the "Century Mark Rule" by Jesse Livermore
From Reminiscence of a Stock Operator, Jesse Livermore is long a copper stock of the early 1900s as it passes up through the $300 price level. This triggers his rule, which goes as follows: "It was an old trading theory of mine that when a stock crossed $100, $200 or $300 for the first time the price does not stop there but goes a good deal higher, so that if you buy it as soon as it crosses the line it is almost certain to show you a profit."
No matter how good a long term trend looks there's no certainty it won't fail, but getting the probabilities on your side is the name of the game. MU hits those checkmarks well.
38 year view:
Micron is a good example of a stock in an industry that's in a secular bull market and has some great classical charting patterns on a short term (daily) and long term basis (monthly+).
Darvas Box Theory:
The Darvas Box Theory is a momentum strategy that highlights periods of consolidation followed by trending bursts, which establish a new price level and lead to periods of consolidation.
Fractals:
Fractal patterns are self-repeating and have similar structure when viewed at different time intervals.
Micron is at an interesting spot here as it tests its former April 2021 highs and January 2000 highs, just under the $100 level - also known as the "Century Mark Rule" by Jesse Livermore
From Reminiscence of a Stock Operator, Jesse Livermore is long a copper stock of the early 1900s as it passes up through the $300 price level. This triggers his rule, which goes as follows: "It was an old trading theory of mine that when a stock crossed $100, $200 or $300 for the first time the price does not stop there but goes a good deal higher, so that if you buy it as soon as it crosses the line it is almost certain to show you a profit."
No matter how good a long term trend looks there's no certainty it won't fail, but getting the probabilities on your side is the name of the game. MU hits those checkmarks well.
38 year view:
Comment:
This stock behaved very well in the last month while many stocks got clobbered. This is an important distinction of relative strength, not only against the majority of tech stocks, but also its group/industry (semi-conductors). A major long signal triggers on a close over $99-$100 - ideally on the weekly and/or monthly time frame.
Comment:
Comment:
A failed pattern is an extremely useful signal. This is not pretty