Friday, January 10, 2014

MU Micron Technology Upward-Sloping Channel Overbot Negative Divergence

Joe Sixpack and Ma and Pa Kettle are chasing into MU. The chart shows this is not a good idea due to the nasty negative divergence. Price explodes higher this week so the momo should carry it a bit higher and maintain enthusiasm, however, exiting long positions on rallies and shorting the rallies appear to be a better path forward. The pink dots show the price extension well above the moving averages requiring the mean reversion. The money flow is the first indicator starting to print a lower low to start pulling price downwards. The volume this week is robust and, with the momo, will likely help maintain MU at these elevated levels for a week or three, or month or so, but the writing is on the wall. The 64.50 level and higher can likely be shorted here forward. Also a break of 22 which would show the 15-month party has ended. Joe, Ma and Pa; look elsewhere for opportunities. This information is for educational and entertainment purposes only.  Do not invest based on anything you read or view here.  Consult your financial advisor before making any investment decision.

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