As of 09/26/2022
  Indus: 29,261 -329.60 -1.1%  
  Trans: 11,999 -129.90 -1.1%  
  Utils: 953 -25.04 -2.6%  
  Nasdaq: 10,803 -65.01 -0.6%  
  S&P 500: 3,655 -38.19 -1.0%  
YTD
-19.5%  
-27.2%  
-2.8%  
-30.9%  
-23.3%  
  Targets    Overview: 09/15/2022  
  Up arrow32,000 or 29,200 by 10/15/2022
  Up arrow13,800 or 11,800 by 10/15/2022
  Up arrow1,000 or 950 by 10/15/2022
  Up arrow11,975 or 10,700 by 10/15/2022
  Up arrow3,800 or 3,500 by 10/15/2022
CPI (updated daily): Arrows on 9/13/22
As of 09/26/2022
  Indus: 29,261 -329.60 -1.1%  
  Trans: 11,999 -129.90 -1.1%  
  Utils: 953 -25.04 -2.6%  
  Nasdaq: 10,803 -65.01 -0.6%  
  S&P 500: 3,655 -38.19 -1.0%  
YTD
-19.5%  
-27.2%  
-2.8%  
-30.9%  
-23.3%  
  Targets    Overview: 09/15/2022  
  Up arrow32,000 or 29,200 by 10/15/2022
  Up arrow13,800 or 11,800 by 10/15/2022
  Up arrow1,000 or 950 by 10/15/2022
  Up arrow11,975 or 10,700 by 10/15/2022
  Up arrow3,800 or 3,500 by 10/15/2022
CPI (updated daily): Arrows on 9/13/22

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:  Bedroom to Boardroom book Remember Me book Bumper's Story book Head's Law book
My stock market books:  Chart Patterns: After the Buy Getting Started in Chart Patterns 2nd edition book Trading Basics book Fundamental Analysis and Position Trading book Swing and Day Trading book Encyclopedia of chart patterns book Encyclopedia of Chart Patterns 3rd Edition book Trading classic chart patterns book

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