Shares of DRAM chipmaker Micron Technology (NYSE:MU) is trading up 8% at $26.49 after trading an earlier session high of $28.85 after Robertson Stephens issued positive comments on the stock earlier in the session.
Micron Technology Chart - $0.50 and $1 box
Today's bullish comments come one day after the point/figure chart of Micron Technology (NYSE:MU) gave a bullish triangle pattern with a trade at $25. The favorable supply/demand pattern along with "Robbie's" positive comments had the stock surging. While the "bullish triangle" is a powerful chart pattern, best results are often found when the pattern develops ABOVE bearish resistance trend (red +). Still, traders should do well in this one and can be targeting the $34 level.
Today's comments by Robertson Stephens hints of some prior accumulation ahead of positive comments. All is fair in love and war and this is common among institutions. Call your best clients and tell them your thoughts before you tell the smaller retail client base. After all, it is the institutional client that pays the bulk of the bills. While we never know for sure if this actually occurs, it has been done. I do not hold it against institutions. At least the market looks like it is agreeing with today's call. That's more than some stock charts have reflected when an analyst has made bullish comments as the stock was under heavy distribution. Now that, I don't like!
With some of the action we've seen in the Disk Drive Index (DDX.X) as of late, there may well be something to today's comments from Robertson Stephens. DRAM along with many disk drives tend to be priced more like a commodity as it relates to personal computer components.
The e-mails we've been sending out for the month of November have subscribers frustrated, as the chart links have not been working. I (Jeff Bailey) forgot to change the link in the e-mails.
If you still want to look at some of those charts, simply change the "/oct01/" segment of the link to "/nov01/" and that should get you to the right folder on our server.
The links should be correct from here on as I now know of the problem and fixed it in my e-mail template.