As of 04/21/2021
  Indus: 34,137 +316.01 +0.9%  
  Trans: 15,040 +145.39 +1.0%  
  Utils: 927 -6.07 -0.7%  
  Nasdaq: 13,950 +163.95 +1.2%  
  S&P 500: 4,173 +38.48 +0.9%  
YTD
 +11.5%  
 +20.3%  
 +7.2%  
 +8.2%  
 +11.1%  
  Targets    Overview: 04/15/2021  
  Up arrow34,800 or 32,900 by 05/01/2021
  Up arrow15,200 or 14,000 by 05/01/2021
  Up arrow950 or 885 by 05/01/2021
  Up arrow15,000 or 12,900 by 05/01/2021
  Up arrow4,400 or 3,900 by 05/01/2021
CPI (updated daily): Arrows on 3/25/21
As of 04/21/2021
  Indus: 34,137 +316.01 +0.9%  
  Trans: 15,040 +145.39 +1.0%  
  Utils: 927 -6.07 -0.7%  
  Nasdaq: 13,950 +163.95 +1.2%  
  S&P 500: 4,173 +38.48 +0.9%  
YTD
 +11.5%  
 +20.3%  
 +7.2%  
 +8.2%  
 +11.1%  
  Targets    Overview: 04/15/2021  
  Up arrow34,800 or 32,900 by 05/01/2021
  Up arrow15,200 or 14,000 by 05/01/2021
  Up arrow950 or 885 by 05/01/2021
  Up arrow15,000 or 12,900 by 05/01/2021
  Up arrow4,400 or 3,900 by 05/01/2021
CPI (updated daily): Arrows on 3/25/21

Bulkowski's Micron Technology Trading Quiz

 

Released 11/23/2020.

MU: Quiz

Below is a slider quiz to test your trading ability. Captions appear below the pictures for guidance, so be sure to scroll down far enough to read them.

 

1 / 4
chart pattern
What chart patterns can you find? Look for the following: right-angled and ascending broadening pattern, head-and-shoulders bottom, descending triangle, Big W or an Eve & Eve double bottom.
Answers are on the next slide.
2 / 4
chart pattern

The head-and-shoulders bottom broke out upward as the above picture shows. On July 12, a broker upgraded the stock from hold to buy, but the stock closed up only 9 cents. Bad reception to an earnings announcement sent prices lower forming the right shoulder.

Question 1: Do you buy, short, or avoid trading this stock?
Question 2: If trading this one, what is the target price?
Question 3: If trading this one, what is the stop price?

 

Answer 1 (buy?): Since you are late getting into the trade, wait for the throwback.
Answer 2 (target?): Measure the height of the head-and-shoulders from the head low to the neckline directly above and use this height added to the breakout price for a target.
Answer 3 (stop?): It depends on where you buy (since I suggest waiting). The right shoulder (RS) looks like it might be a good location because of the inherent support.
More on the next slide.
3 / 4
chart pattern

Note: Weekly chart.

Here's notes from the time I was considering placing the trade.

"My gut feeling is that the stock will curl around in a throwback. When it begins moving up after that, then it's a buy for the longer term. A trendline drawn from the high on the [prior] chart [which I show here in red] downward using the 1-2-3 trend change method I outlined in my book Trading Classic Chart Patterns (page 22) and in Trader Vic - Methods of a Wall Street Master also suggests a trend change has occurred. The line follows the peaks and bottoms slightly above the right shoulder low.

"Here we can still see the head-and-shoulders but now we also see a rounding turn. It's not as rounded as I like to see but I think the shape suggests price has bottomed."

The following slide shows the next part of the trade.
4 / 4
chart pattern

The stock signaled a buy when price closed above the blue, down-sloping neckline. A throwback attempt was made but it took longer than a month, so it doesn't count. The big news is I didn't take the trade. I checked my notebook and there was no entry explaining why. Looks like a missed a good trade.

The end.

See Also

 
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My novels:  Bumper's Story Head's Law

Chart Patterns: After the Buy Getting Started in Chart Patterns, Second Edition Trading Basics Fundamental Analysis and Position Trading Swing and Day Trading Visual Guide to Chart Patterns Encyclopedia of Candlestick Charts Trading Classic Chart Patterns

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