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Micron is a potential swing trade into 2018

We are monitoring the DRAM and 3d NAND manufacturers, with an eye on MU for a swing position into 2018. Earnings are no longer an impediment, as the company beat by a wide margin. With this in mind, we are watching the semiconductors for bullish flow, as most of the stocks in this industry group have pulled back from respective 52-week highs.


  • Micron Q1 earnings beat on both revenue and earnings expectations.
  • Management reported top-line growth exceeding 70%.

Technically speaking, price action reversed the day after earnings, producing a lower high. 39.00 is major support, with levels at 44.00 the most likely area for a pivot low. Moving averages, VBP and Fibonacci all converge along this level.


MACD shows bulls are in control, though the bounce requires a follow through to keep us interested. Therefore, in order for this trade setup to work, we must see a bullish day. Then, look for a bullish follow-through day to confirm bulls are still interested. Without this confirmation, Micron could be headed for the 42.00 zone. This is where MU paused in October, before breaking higher. It then tested the area the second week of November, with the pivot at 42.45, before resuming its run to 52-week highs. This same zone held Tuesday through Friday last week.

The stock remains well-positioned for a sustained rally in 2018, so the above technical levels need to hold.

We will be cutting the LIVE broadcast short today, after 1:00 PM, so plan to monitor your open positions accordingly. Volume should be tepid at best. I will be monitoring the markets via cell phone while doing some last minute shopping.

Happy Holidays,


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