MU: This is a decisive moment! |1H & D charts|1-Hour Chart (Left Side)
On the 1-hour chart, the price formed a strong uptrend followed by a consolidation pattern, identified as a flag. This pattern typically indicates a continuation of the previous trend, meaning that a breakout above the flag's resistance could lead to further gains. However, the price is currently testing the lower boundary of the flag, which is aligned with the 21-period EMA. If the price breaks below this level, it may invalidate the bullish flag, leading to potential downside pressure.
Daily Chart (Right Side)
On the daily chart, the price is approaching resistance around $127.24, which aligns with an open gap. The gap closure often acts as a resistance level, and the price action around this area could determine the next move. If MU's price loses the lower support of its flag pattern seen on the 1h chart, its price could seek its next Fibonacci's Retracements, which are now our next support levels.
Only a clear bullish reaction, breaking (and closing) above the 109.47 would trigger tthis bullish flag upwards, starting a new bullish rally to its gap. For now, MU's price looks weak.
Key Levels to Watch
Resistance: $109.47 is the immediate resistance, with a potential breakout indicating further upside.
Support: The $104.77 level.
Summary
MU is at a crossroads where the resolution of the flag pattern on the 1-hour chart will likely dictate the next significant move on the daily chart. A breakout could lead to continued upward momentum, while a failure might result in a retracement towards lower support levels.
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“To anticipate the market is to gamble. To be patient and react only when the market gives the signal is to speculate.” — Jesse Lauriston Livermore
All the best,
Nathan.
