Micron

Micron, MU, traded down by a bit today. Below is the weekly chart.

www.freestockcharts.com

A base seems to be forming at about 5.10. You can also see three successively lower peaks, no real trend to it other than just down. I would like to point out the area label "Triple Top?". It isn't really a traditional triple top but it does superficially resemble one. Note the three highs that went lower each time. From there MU went down to what would become a base. Notice the one candle that broke and went down to 3.97, since the price never returned to that low I think we can disregard it. MU traded flat for the last two days and then today ended up lower. That makes me think that they have peaked and will begin to trade down; probably down to 5.10 or so. I think MU is one to watch, if they return to 5.10 they could be a decent looking buy. Buying there wouldn't be the safest thing however, the trade would need to be watched closely. The reason for the lack of safety is that the peaks are going lower and lower (11.95,  9.16, 8.08), could be a sign of long term negative movement. Still, buying for a small bounce could be profitable. Some hypothetical trading points below.

Entry: 5.15 (a bounce off of 5.10, if the price goes lower than 5.00 consider this trade invalidated)
TP: 7.00, 6.50, 6.00 (Below the 100 week, the middle of the river, and under the river)
SL: 5.00 (under the base)

Because of how tight the trade is, a 0.15 difference from entry and SL, this one will be easy to get stopped out of. The main way to mitigate that is to make sure to buy on a bounce rather than buying as soon as the price hits 5.15. Holding for a higher price, say 8.00, may look tempting but I don't think the reward makes the risk worthwhile. I consider this one to be a long term bear case, keep this in mind before entering. Normally you would not want to buy something with a negative looking chart like this but the potential for almost 40% gain looks worth the risk. Make sure to keep the stop loss at 5.00, if they break below their base they could fall to 1.90 or worse. Don't be afraid to modify the TP lower if they stall out on their way back up, for this one it will be better to lock in gains as soon as possible.

One last thing to mention. You probably noticed the dotted lines on the chart. Those are Fibonacci retracement marks. The triple top was at the 61.8% and the current price is at 38.2%. This makes the long term bear case stronger. I would not consider MU as a long term buy unless they formed a strong reversal pattern or broke the 61.8% mark. I'll discuss Fibonacci numbers on Saturday if you want a more in depth look at how to trade with them.

If you have a stock you want analyzed leave it in the comments. 

Do your own research before taking any position. I do not currently own any MU and do not plan on buying any within the next 72 hours.