After the pullback in February, it is apparent that technology is still a strong area of the market. The chart of Micron (MU) looks real strong here after bouncing off the 200 DMA. It also sports a couple of great technical features. The relative strength to the $SPX is starting to outperform. The SCTR is at 97.2 which suggests the price action is in the top 3% of the market. On Friday, the chart popped above the down sloping trend line on great volume.
The MACD has also returned to positive territory which is another bullish signal. The weight of the evidence suggests this charts wants to push higher. A stop below the $45 level should protect capital. This stop is selected because if the price pulls back below that, it would be a false breakout.
Good trading,
Greg Schnell, CMT, MFTA
