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Micron Technology Plunges More than 10% - Technical Assessment

Micron Technology (MU) has been a bear throughout 2015, falling from the 2014-high of 36.59 made in December to a low of 13.50 by August this year. The weekly chart shows a market that has completely turned around the 2014-rally and still looks bearish now that the weekly RSI is no longer in the oversold area. 

MU Weekly Chart 10/20
(click to enlarge)

It is true that the consolidation since late August could be a completed ABC correction. At this point, within this bearish market, and even within a medium-term sideways market (since August), there is downside risk back towards the 13.50 low.

MU Daily Chart 10/20


(click to enlarge)

The daily chart shows that price is held under a previous resistance around 20, and was turned around after tagging the 100-period simple moving average. The strong bearish daily candle (representing a little more than 10% drop) during the 10/20 session is an early indication that bears might be ready to take this market back. 

The alternative is further consolidation/bullish correction. For example, if price can't push and hold below 16, the bulls might still be in force in the short to medium-term, with upside towards 20, 22-23. We might see some "filling-the-gap" before bearish continuation.