Micron Technology (MU)

[JLS]

MU Pullback

The top image shows today’s pullback over two hours ago. It shows two horizontal red lines; the top dashed line and a lower solid line. At the time of the image I thought MU was headed sometime this week for the bottom red line, or the top of the original fork which is valid all the way back to early 2016.

The bottom image shows a calculated support level of $41.50, and that would have MU testing SMA(50) as it historically tends to do. At this time I’m counting on that test then I’ll be buying Calls that are dated to expire after earnings which is scheduled for Tuesday, December 19, 2017. Whether I pick the Friday of that week or the following week (or both) for expiration has not yet been determined. All that has been determined is the number of Calls to be bought, and it isn’t small. I will also continue to sell Calls against the shares that I own in addition to any Calls I purchase.

The pullback expected is a 38% Fib pullback of the gains made from early last August. The Fib lines are the horizontal dashed yellow lines in the SR chart.