After a fantastic run from 21 to 32, now it had attempted to cross 33 for the second time.
Usually on 2nd/3rd attempt the price goes down. With negative divergence on RSI/CCI , i suspect the price will dive to long term trend support and fill the gap if a large slide happens. MACD and RMI are on top as well giving downside potential. Note that previous 3-5% push had larger volume - last 4.5% push had less volume.
If goes below 31.71 i would say the trend change is confirmed with a price target of 29+, where i see a good buy zone should fundamentals stay in tact [as they are great for MU and it has a low P/E comparing to the industry] and no bad news coming out. Closing above 33 and breaking 34 would indicate a break of trend and would violate the idea, but i would expect it to happen on a huge volume and with a large push due to some positive news.
Late comment, but idea was succesfull - maybe for not all the reasons i outlined. but surely within the trend lines
timwest
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I would add that if you have a range expansion bar on the last bar, that it is important to wait at least another bar, but best to wait 3 bars, for a divergence to set-up.
A-shot
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But what if the range expansion and the following bar today go on low/normal volume?
timwest
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I'm not a huge fan of volume on a 1-day or 2-day basis as a lot of it is noise. The bigger time-frame patterns of volume are important. If you allow 3-days from a range expansion for the market to at least go the same amount of price movement, then that is usually a good way to set up a divergence. Range expansions are important.
timwest
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So, MU did go up by an amount of the original range expansion on the following day...
timwest
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see
A-shot
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I live, i learn. And i salute your will to tell me my mistakes!