Swing Trade Idea (MU) – June 06, 2023
Our bearish trade for Tuesday, June 6th is Micron Technology Inc. (MU). MU is part of the Technology Sector, which has performed at 0.70% over the last week, with MU underperforming relative to its sector at -8.33% over the same period.
MU traded into an area of resistance at $70 and is pulling back from his level. Strength is already declining and we therefore believe that MU will continue to underperform over the period of this trade.
As a close, if MU were to trade above $70 for multiple days, this would invalidate our analysis and we will consider cutting losses on the trade. We also want to consider cutting losses on this options trade if the value of the vertical spread moves above $5.40.