MU closes higher for the 2nd day in a row
Micron Technology Inc. (MU) Technical Analysis Report for Oct 12, 2018 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, MU ended the week -2.55% lower at 42.47 after gaining $0.50 (1.19%) today, strongly underperforming the Nasdaq 100 (2.77%). Closing within the prior day's range, prices missed to decisively move beyond the previous day's trading range.
Daily Candlestick Chart (MU as at Oct 12, 2018):
Friday's trading range has been $1.83 (4.2%), that's far above the last trading month's daily average range of $1.44. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently significantly lower than usual for MU.
One bearish candlestick pattern matches today's price action, the Black Candle. The last time a Black Candle showed up on Tuesday, MU lost -1.56% on the following trading day.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Selling might speed up should prices move below the close-by swing low at 41.32 where further sell stops could get activated. Further selling might move prices lower should the market test September's nearby low at 40.68.
Among the three market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "2 Consecutive Higher Closes" stand out. Its common bullish interpretation has been confirmed for Micron Technology. Out of 309 times, MU closed higher 54.05% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the long side has been after 10 trading days, showing a win rate of 57.93% with an average market move of 1.80%.