MU In Dominant 7-Month Down-Channel Ahead of Earnings

Mike Paulenoff MPtrader

MU, the 2017 into 2018 darling of the hedge fund community, reports earnings tonight after the close. If my attached condensed hourly chart back to its all-time high at 64.68 (5/30/18) is providing hints about the likely price path in reaction to the news, then the dominant 7 month down-channel should, well, remain the dominant factor governing price direction, which is down.

In that MU is situated right in the middle of its channel, a negative reaction to EPS points to a target in the vicinity of 28.50 (from 34.40), while a positive reaction to earnings projects a pop towards a test of the dominant upper channel boundary line, now in the vicinity of 41.00 where intense selling interest should emerge that will have the potential to drive MU across the channel width to test the lower channel boundary line.

Only a climb and close above 41.00-41.50 will neutralize the May-Dec. downtrend in MU... Last is 34.41/42

Author

Mike Paulenoff

MPtrader

Michael Paulenoff has been a student of and a participant in the world financial markets for the past 26 years, since his graduation from the Georgetown University School of Foreign Service in 1979.

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