Micron Technology (MU)

[JLS]

MU Trade Status

The Calls I sold last week on MU expired worthless last Friday so I could say that the effective value of my shares (or trade) is a little over a dollar higher than shown on the charts.

Today’s candle is (according to pattern traders) an upward breakout of an inverted pennant pattern that lasted seven days. The horizontal solid green lines define that pattern’s height. The dotted green line defines the breakout level that would signal a pattern trade. Or, for those who prefer forks or channels (as I do) the stock is simply reversing off the bottom tine of a blue fork (or inclining channel). Whatever.

I will sell Calls again, but not until a short-term consolidation commences, probably at the boundary of a channel; and if MU continues higher from here, and the overall market remains relatively benign, that is likely to happen at the intersection of the long horizontal green line and the center tine of the fork.

As for the two forks, the red one has thicker lines as I consider that fork to be more dominant (until it isn’t).