$MU

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Looking at the 1-hour chart, MU has experienced a significant downtrend, dropping from a recent high of 871.49 down to a low of 650.00. However, the price has recently found support and is attempting a recovery, currently trading around 689.42. Crucially, the price is now pushing up against the shorter-term moving averages, specifically the MA5 (690.55) and MA10 (684.86), indicating a short-term momentum shift. The longer-term moving averages (MA60 at 841.46, MA120 at 871.03) remain sharply above the current price, confirming the broader trend is still heavily bearish. The MACD indicator shows the histogram turning green and the DIF line crossing above the DEA line, signaling a potential bullish reversal in the short term.

My trading plan revolves around a short-term mean-reversion or "dead cat bounce" strategy. I am looking for a quick scalp or intraday swing trade to the upside, targeting the nearest significant resistance levels, while maintaining strict risk management. I will look to ride the momentum back toward the 720-750 range, where previous consolidation occurred and where the MA30 (763.79) will likely provide strong resistance.

I predict that MU will continue its short-term upward correction in the near term, testing the 700-710 psychological resistance zone. If it breaks above that, it could push toward the 724.80 (24h High) level. However, given the heavy overhead moving averages, I expect selling pressure to resume once it hits these resistance zones, as the macro trend remains downward.

🔴What trade plan I follow and why❓️

I am following a Long (Buy) position based on the 1-hour timeframe. The reason is purely technical: the price has formed a local bottom at 650.00, the MACD is showing a bullish crossover, and the price is reclaiming short-term moving averages. This offers a favorable risk-to-reward ratio for a bounce, even if it's just a temporary reprieve in a larger downtrend.

🔴When I start my trade❓️

I would start this trade once the current 1-hour candle solidly closes above the MA10 (684.86) and holds the 689 level. For a more conservative entry, I would wait for a slight pullback to the 685 level to confirm support before entering.

The recent price action shows a series of small-bodied green candles following a large red capitulation candle, forming a potential "Morning Star" or a localized "Bullish Harami" reversal pattern. This indicates that the selling pressure has exhausted itself for the moment and buyers are stepping in to support the price.

Final Verdict:Short-term Bullish / Long-term Bearish. The immediate setup favors a short-term long position to capitalize on the oversold bounce, but this is a counter-trend trade. I will take profits quickly near resistance and will not hold this position long-term due to the overarching bearish moving average alignment.