MU: This could reverse the trend! (D&W charts)
Daily Chart (Left):
Double Bottom Formation: The price has formed a double bottom pattern near the $85 level, which often signifies a potential reversal point. This suggests that there might be bullish pressure accumulating at this support zone.
Gap: There is a clear gap in the price action from July, which could potentially act as resistance. Gaps often get filled, meaning that price might gravitate towards the gap zone in the mid-term.
Resistance Area: The price is approaching a critical resistance area around $91.47, which aligns with the 21-day EMA. This level needs to be cleared for any significant bullish momentum to continue.
21-day EMA: The stock has been trading below the 21-day EMA, and this has acted as a dynamic resistance. A clear break above this level could signal a stronger bullish move.
Weekly Chart (Right):
Hammer Pattern: On the weekly chart, a hammer pattern has formed at the $84.91 level, which is a bullish reversal candlestick pattern, often seen at the bottom of a downtrend. This suggests the possibility of a bounce from this level, reinforcing the significance of the support zone.
Key Resistance Zones: The $91.47 level is also important on the weekly chart, as breaking above it would confirm the bullish reversal indicated by the hammer pattern. The next target would be the $111 level, where the price encountered resistance earlier.
Conclusion:
In the short term, $91.47 is the key resistance area to watch. A successful breakout above this level could lead to a bullish move towards the $111 level. However, failure to break above this resistance may result in consolidation or a potential retest of the $85 support level. The hammer pattern on the weekly chart adds weight to a possible bullish reversal, but confirmation is needed with a move above $91.47.
For more detailed technical analyses and insights like this, be sure to follow my account. Your support helps me continue providing valuable content to help you make informed trading decisions.
Remember, real trading is reactive, not predictive, so let's stay focused on the key points described above and only trade when there is confirmation.
“To anticipate the market is to gamble. To be patient and react only when the market gives the signal is to speculate.” — Jesse Lauriston Livermore
All the best,
Nathan.
Double Bottom Formation: The price has formed a double bottom pattern near the $85 level, which often signifies a potential reversal point. This suggests that there might be bullish pressure accumulating at this support zone.
Gap: There is a clear gap in the price action from July, which could potentially act as resistance. Gaps often get filled, meaning that price might gravitate towards the gap zone in the mid-term.
Resistance Area: The price is approaching a critical resistance area around $91.47, which aligns with the 21-day EMA. This level needs to be cleared for any significant bullish momentum to continue.
21-day EMA: The stock has been trading below the 21-day EMA, and this has acted as a dynamic resistance. A clear break above this level could signal a stronger bullish move.
Weekly Chart (Right):
Hammer Pattern: On the weekly chart, a hammer pattern has formed at the $84.91 level, which is a bullish reversal candlestick pattern, often seen at the bottom of a downtrend. This suggests the possibility of a bounce from this level, reinforcing the significance of the support zone.
Key Resistance Zones: The $91.47 level is also important on the weekly chart, as breaking above it would confirm the bullish reversal indicated by the hammer pattern. The next target would be the $111 level, where the price encountered resistance earlier.
Conclusion:
In the short term, $91.47 is the key resistance area to watch. A successful breakout above this level could lead to a bullish move towards the $111 level. However, failure to break above this resistance may result in consolidation or a potential retest of the $85 support level. The hammer pattern on the weekly chart adds weight to a possible bullish reversal, but confirmation is needed with a move above $91.47.
For more detailed technical analyses and insights like this, be sure to follow my account. Your support helps me continue providing valuable content to help you make informed trading decisions.
Remember, real trading is reactive, not predictive, so let's stay focused on the key points described above and only trade when there is confirmation.
“To anticipate the market is to gamble. To be patient and react only when the market gives the signal is to speculate.” — Jesse Lauriston Livermore
All the best,
Nathan.
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