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5 Year-End Trades From the Tech Sector

Micron Technology

We're seeing another bottoming pattern forming in shares of Micron Technology (MU - Get Report). Like Microsoft, Micron has underperformed the broad market this year, barely breaking even between the first trading day of January and today. But a long-term double bottom formation in shares is a sign that shareholders could be getting a reprieve from selling very soon.

A double bottom is a price pattern that's formed by two swing lows that bottom out at approximately the same price level. The two bottoms are separated by a peak that marks that resistance level for the setup -- a breakout above that price (right around $7 for MU) is the buy signal for shares. It's worth noting that resistance in Micron is actually tougher than just a single peak: that $7 barrier has been acting like strong resistance on the last five attempts higher. Believe it or not, that's actually a good thing because it means that a breakout above resistance carries more technical significance for MU.

Remember that this is a long-term pattern -- it's been forming since all the way back in April, so its trading implications are bigger too. The breakout above $7 is likely to come with a long-term shift towards buyers being in control of this stock...

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SYM TRADE IT LAST %CHG
AZPN $40.78 -0.35%
MU $28.55 1.03%
MSFT $42.64 -0.63%
SYMC $24.10 -0.37%
VZ $49.17 -0.43%

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