MU breaks below Thursday's low
Micron Technology Inc. (MU) Technical Analysis Report for Jan 24, 2020 | by Techniquant Editorial Team
MU finished the week 0.17% higher at 57.76 after losing $1.44 (-2.43%) today, significantly underperforming the Nasdaq 100 (-0.82%). The bears were in full control today, moving the market lower throughout the whole session. Closing below Thursday's low at 59.03, the market confirmed its breakout through the prior session low after trading up to $1.79 below it intraday.
Daily Candlestick Chart (MU as at Jan 24, 2020):
Friday's trading range has been $2.78 (4.63%), that's far above the last trading month's daily average range of $1.47. Weekly volatility is also higher, being slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently lower than usual for MU.
One bearish candlestick pattern matches today's price action, the Black Candle.
Prices broke below the key technical support level at 58.48 (now R1), which is likely to act as resistance going forward. The last time this happened on December 9, 2019, MU actually gained 2.17% on the following trading day.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Among the seven market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Close near low of period" stand out. Although it is usually interpreted as bearish, it has actually shown to be bullish for Micron Technology. Out of 544 times, MU closed higher 51.10% 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 56.62% with an average market move of 1.25%.