MU finds buyers at key support level
Micron Technology Inc. (MU) Technical Analysis Report for May 22, 2020 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, MU finished the week 1.19% higher at 44.94 after edging lower $0.28 (-0.62%) today on low volume, underperforming the Nasdaq 100 (0.38%) ahead of tomorrow's Memorial Day market holiday. Closing within the prior day's range, prices failed to decisively move beyond the previous day's trading range in a lackluster session.
Daily Candlestick Chart (MU as at May 22, 2020):
Friday's trading range has been $1.07 (2.37%), that's below the last trading month's daily average range of $1.81. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for MU.
One bullish candlestick pattern matches today's price action, the Takuri Line. The last time a Takuri Line showed up on Monday, MU actually lost -1.74% on the following trading day.
After trading down to 44.24 earlier during the day, the market bounced off the key technical support level at 44.72 (S1). The failure to close below the support could increase that levels importance as support going forward.
The stock shows weakness in the short-term (in accordance with its long-term downtrend) with only the medium-term trend still being bullish.
Buying might accelerate should prices move above the nearby swing high at 47.04 where further buy stops could get activated.
Among the four market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bounced off Technical Support S1" stand out. Its common bullish interpretation has been confirmed for Micron Technology. Out of 401 times, MU closed higher 53.12% 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 52.87% with an average market move of 1.33%.