Micron Technology (Friday’s close $50.50) rallied from $9.35 in May, 2016 to $64.66 in June, 2018 (A-B) and then declined and found support near ±$30 where it built a bullish technical base in the form of a “W” formation (dashed lines). The recent rise above ±$45 (neckline – dotted line) signaled the breakout from this pattern and the start of a new up-leg (C).
Behaviour indicators including the 40-week Moving Average (40wMA) confirm the bullish status. Only a sustained decline below ±$39-40 would be negative.
Point & Figure measurements provide a target of $54. The large “W” pattern (dashed lines) supports higher targets.
Monica Rizk is the senior Technical Analyst and Ron Meisels is the president of Phases & Cycles Inc. (www.phases-cycles.com). And he tweets at @Ronsbriefs. They may hold shares in companies profiled.
Chart source: www.decisionplus.com