u s shares highlights micron technology 2 568322015
<p>Micron Technology (MU) – Further potential weakness below 29.80 (Click to enlarge chart) Key elements Since hitting a high of 36.59 on 08 December 2014, […]</p>
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Micron Technology (MU) – Further potential weakness below 29.80
(Click to enlarge chart)
Key elements
- Since hitting a high of 36.59 on 08 December 2014, Micron Technology has started to exhibit signs of “distribution”.
- It has traded below the key long-term 200-day Moving Average (in orange) and evolved within a medium term descending channel (in pink) in place since 08 December 2014 high.
- The upper (resistance) and lower (support) boundaries of the medium term descending channel now stands at 29.80 and 24.45/21.10 respectively.
- The 29.80 resistance also confluences closely with the 89-day Moving Average (in blue) and the 38.2% Fibonacci retracement from the recent down move from 08 December 2014 high to 27 March 2015 low.
- The intermediate term RSI oscillator remains bearish below its resistance (in red).
- The 21.45/21.10 support confluences with a Fibonacci cluster (50% Fibonacci retracement from the up move from 04 October 2011 low to 08 December 2014 high + 0.764 Fibonacci projection from 08 December 2014 high to 24 April 2015 high.
Key levels (1 to 3 months)
Pivot (key resistance): 29.80
Support: 25.66 & 21.45/21.10
Next resistance: 32.90
Conclusion
As long as the 29.80 monthly pivotal resistance is not surpassed, Micron may see another round of potential downside movement to retest the 25.66 support (24 March 2015 swing low) before targeting the key support zone of 21.45/21.10
On the other hand, a clearance above 29.80 is likely to invalidate the bearish scenario for a further squeeze up towards the next resistance at 32.90
Source: Charts are from eSignal
Disclaimer
The information contained in this material is intended for general circulation only. It should not be construed as a recommendation, or an offer (or solicitation of an offer) to buy or sell any financial products. The information provided does not take into account your specific investment objectives, financial situation or particular needs. Before you act on any recommendation that may be contained in this report, independent advice ought to be sought from a financial adviser regarding the suitability of the investment product, taking into account your specific investment objectives, financial situation or particular needs. All queries regarding the contents of this material are to be directed to City Index Asia Pte Ltd.
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