MU has strong fundamentals and recent outperformance but is in consolidation; awaiting a directional breakout from the current chart pattern.

It's Micron. Listen, this one has been a huge outperformer whether we're talking about it on a year-toate or yearoveryear basis. Uh at times it can be bumpy though for Micron.

I mean if the stock does no wrong or if it does no wrong you stay long. we had that massive runup last year into this year and then we kind of had that summer low. You know, we just kind of chopped sideways undecided, but to me, I just think that that's building up pressure uh for the next breakout.

I love when these stocks, you know, I mean, again, they get ahead of themselves maybe a little too far, too fast, even though the fundamentals and the business support it and then they got to consolidate a little bit, kind of digest and, you know, bring new buyers in.

And I just look at, you know, with memory. I mean, again, I I I've mentioned, you know, like this MacBook that I'm talking on right now, I bought it at the right time. The same MacBook because of the cost of memory went up like $2,000.

I mean, they can't make enough. They literally cannot make enough. I mean, Micron is selling everything they can.

And then actually saw a cool headline this morning. I mean, their business is doing well. I think they gave, don't quote me on this, I think every single employee in Taiwan got like a $30,000 bonus and stock options.

I mean, obviously Micron is like, "Our business is booming. We're gonna pay our employees."

You need memory to do AI and guess who makes most of it. One of the biggest is Micron. Sometimes it can be hard to see the effects of these supply crunches. If you look for something as simple as a flash drive on Amazon, you can see that uh the prices have gone up significantly.

But we can see here when we look at our chart, uh kind of an interesting situation because during our last earnings event on June 24th, we had a big pop that took us up to 1255, but it dissipated very quickly here.

Now to the upside, we had this gap level to consider between 1123 and 1097. uh that was a uh important point that has not yet been filled here. So that could be an area that the bulls may be watching for the upside.

We also had a repeated ceiling here near 1035. In the more uh short term, we had a small gap that formed here, our green line near 960. Another one here that roughly matched up with some relative lows.

Didn't quite fill it near about 8.97. And then another gap here that was breached, but uh quickly recovered at 780.

Our prevailing pattern here, our blue upward sloping trend line was broken. That has since given way to a triangular shape here between our two white lines converging toward each other.

One pointing up, one pointing down. Getting close to some kind of conclusion of that pattern as well here. So, be on the lookout for a directional breakout to take hold if we do breach one of these lines.

We are slipping below our 5-day exponential moving average today in dark blue coming in at about 9.85 right now. We also seem to have uh come come close to touching our 21-day EMA in teal.

That one is at about 960. So uh that also is roughly in confluence with our trend line. So that points to greater emphasis on it as a potential breakdown point.

RSI still trending upward for for now, but we seem to be on the verge of breaking through our green trend line here today. The day is still pretty young. A lot could happen, but uh for now it seems like that could be starting to develop. So look for RSI to dip below 50 as well.

Much of the trading activity that we've seen in recent days has been between about 875 to95. A bit of a a larger range here, but uh that's where a very pronounced node is according to our volume profile study.

So an important area to cross above would be that $1,000 mark uh based on the trading activity we can see here.