$MU provides us with a great case study for what to look for in a winning stock. Our Advanced Reports members have been long $MU since the advanced pivot entry on 11/14 at 17.94
The Setup:
$MU set up in a relatively tight (approx 12% deep) 1st stage flat base with a classic pivot at 18.33. Within the base, $MU presented us with an earlier advanced pivot at 17.94-17.98. Often we’ll a larger consolidation (the flat base highlighted above) and a smaller/tighter consolidation within that base (also shown above). This not only allows us to get in early and ahead of the crowd, but it also allows us to lower our risk.
In this scenario support can be seen around the 50dma and the 16.75 level. From the classic pivot of 18.33 we would be risking about 9.5% for a break of support. However, from the advanced pivot of 17.94 we would only need to risk about 6.5% to test support.
Other bullish technicals
Moving averages: at the time of the advanced pivot breakout, all of the moving averages were layered on top of each other from shortest to longest. This shows a strong uptrend on all time frames.
RS line at 52wk highs ahead of breakout
High volume on each price spike
Other bullish qualities
Strong industry group: $MU is a part of the semiconductor industry group which has lead most of this rally. Check out the ETF which tracks the group $SMH
Trade Management pre-earnings
It’s important to have a cushion when your stock is heading into earnings. Yesterday we were sitting on a +12% gain in $MU before earnings were set to be released. This coupled with a strong industry group, a very healthy and bullish chart, as well as a very strong general market allowed up to hold through the earnings release.
Check out our Advanced Stock Reports to see how we’ll manage $MU and the next big winning trades moving forward.
The Setup:
$MU set up in a relatively tight (approx 12% deep) 1st stage flat base with a classic pivot at 18.33. Within the base, $MU presented us with an earlier advanced pivot at 17.94-17.98. Often we’ll a larger consolidation (the flat base highlighted above) and a smaller/tighter consolidation within that base (also shown above). This not only allows us to get in early and ahead of the crowd, but it also allows us to lower our risk.
In this scenario support can be seen around the 50dma and the 16.75 level. From the classic pivot of 18.33 we would be risking about 9.5% for a break of support. However, from the advanced pivot of 17.94 we would only need to risk about 6.5% to test support.
Other bullish technicals
Moving averages: at the time of the advanced pivot breakout, all of the moving averages were layered on top of each other from shortest to longest. This shows a strong uptrend on all time frames.
RS line at 52wk highs ahead of breakout
High volume on each price spike
Other bullish qualities
Strong industry group: $MU is a part of the semiconductor industry group which has lead most of this rally. Check out the ETF which tracks the group $SMH
Trade Management pre-earnings
It’s important to have a cushion when your stock is heading into earnings. Yesterday we were sitting on a +12% gain in $MU before earnings were set to be released. This coupled with a strong industry group, a very healthy and bullish chart, as well as a very strong general market allowed up to hold through the earnings release.
Check out our Advanced Stock Reports to see how we’ll manage $MU and the next big winning trades moving forward.