MU update 08/29

A new ticker, so I want to devote an entire update on it as I’ll cover the monthly, weekly and daily charts.

I always assess where any ticker is in the big picture first, before I can start labeling recent advances, as to get a better idea of how it moves big picture-wise and to then get a better sense of where it will go next, and especially how. The monthly chart below shows MU is an “ABC-er”: it moves in large A, B, C waves, which consist of smaller a, b, c waves, which in turn (as you will see in the weekly and daily chart) move in 5 waves. What the monthly chart tells us is that price is in major-c of Primary-A of Cycle-C for MU. The most significant recent development is that price has broken above the long term (purple) DownTrend arrow; breaking out and resetting the long term DT to an UpTrend. A standard c=a relationship targets $45.

With that knowledge we can then zoom in on the weekly chart

MU monthly

Please note that the color labeling in the weekly chart below is different from the monthly chart. From the low made in late 2012, we can count nicely 5 (black) intermediate waves up to complete (blue) major-A. Similarly we can count so far 4 (black) intermediate waves up off the (blue) major-b low. Note the negative divergence on the Money Flow Index, and the MACD hasn’t given a buy crossover yet. This is a rather typical set up for a 4th and 5th wave; where the latter will likely not generate buy signals.

MU weekly

When we then zoom in on the daily chart for an even more detailed look of the advance off the early-2016 I am able to count it the same as on the weekly chart, which I really like as the daily chart gives so many more scribbles that can confuse the analyst (me 😉 )

Also here we see negative divergence on the MFI (not as much money is flowing into the stock at the current price action: 5th wave behavior) and we also see that price is trying to break above the red down trend arrow. Once it does, it signals the prior DT is over, and a new UP is underway. Since black intermediate-1 was rather weak, I expect intermediate-5 to be strong and I only place the “5?” in the upper right corner for clarification. It’s not the price target I envision. Based on the monthly chart we may see $45. At a minimum >$33

MU daily

Once Primary-A completes, I expect Primary-B to retest the long term downtrend line as shown in the monthly chart before Primary-C of C-3 should take hold. That will be a fun one to trade 🙂