It is time for MU gains my friends.
Results from US and China G20 dinner:
Tariffs: Both sides agree to stop imposing new tariffs. (tariffs on USD200bn of Chinese goods will not be raised from 10% to 25% on 1 January 2019.)
Imports: China is willing to import more goods from the US based on the needs of the Chinese people and to gradually address the trade imbalance issue.
Others: Both countries agree to open up their domestic markets. They will accelerate negotiations with the aim of withdrawing all tariffs that have been imposed. Both countries may conduct mutual visits in due course.
(Source: CNTV, Xinhua, White House, ANZ Research)
This positive news will take a lot of pressure off of semiconductors, which I am bullish on. Currently long on $MU.
$MU has retested $34 last month for a double bottom completion and recently completed what I think is an inverse head and shoulder pattern. Another thing to note is that it is attempting to break out of this downward channel here.
If you’re looking to enter a position here, stop loss will be around 37.49, this level is where the inverse head and shoulders pattern will be invalidated, and potentially be pushed back into the channel for more downside.
Target will be around 41.80 – 42.00; however, more upside is possible. Lock in your profits when you can.
Going to be a really interesting first week going into December gang…
Keep an eye out for 2850 level on SPX.