Bullish Stock Charts: AFMD, SIEN

Micron Technology, Inc. (NASDAQ: MU)

Micron Technology, Inc. provides semiconductor systems worldwide. It operates in four segments: Compute and Networking Business Unit, Mobile Business Unit, Storage Business Unit, and Embedded Business Unit. The company offers DDR4 and DDR3 DRAM products for computers, servers, networking devices, communications equipment, consumer electronics, automotive, and industrial applications; mobile low-power DRAM products for mobile phones, tablets, embedded, computers, and other mobile consumer device applications.
Take a look at the 1-year chart of Micron (NASDAQ: MU) with the added notations:

MU’s trend has been simply downward since the start of the year. However, the stock found it’s footing in August and started moving sideways. In addition, over the past 4 months MU has formed a key support level at $14 (green), while also forming a trendline of resistance (red). At some point, one of those two lines will have to break.

The Tale of the Tape: MU has an important level of support at $14. A trader could enter a long position at $14 with a stop placed under the level, or on a break through the trendline resistance. If the stock were to break below the support a short position could be entered instead.

Canadian Pacific Railway Limited (NYSE: CP)

Canadian Pacific Railway Limited, through its subsidiaries, operates a transcontinental railway in Canada and the United States. The company provides logistics and supply chain expertise services. It transports bulk commodities, including grain, coal, fertilizers, and sulphur; and intermodal traffic comprising retail goods in overseas containers that can be transported by train, ship, and truck, as well as in domestic containers and trailers that can be moved by train and truck. The company also transports merchandise freight consisting of finished vehicles and automotive parts, chemicals and plastics, crude oil, and forest products, as well as metals, minerals, and consumer products.
Take a look at the 1-year chart of Canadian (NYSE: CP) with the added notations:

CP started its current decline in April, but in August the stock started a sideways move. During the sideways move, CP tested the $130 level (red) as support on two separate occasions, thus creating an important 52-week low support at that mark. Now that the $130 level has been broken, the stock should be taking another significant leg lower.

The Tale of the Tape: CP broke a key level of support at $130. A trader could enter a short position on any rallies up to or near $130 with a stop placed above the level. If the stock were to break back above the $130 level, a long position might be entered instead.

Sugar Trade

In this article, I show you my analysis and share my thoughts on what is likely to take place with sugar looking forward 2-3 months if not longer. Instead of writing a long article I have attached three charts which clearly show my thinking and price projections.

MONTHLY CHART OF SUGAR

The monthly chart moves as slow as molasses for trading and investing, but it does provide valuable information. The key data it shows us are the major trend, support and resistance levels, and potential reversal signals via candlestick patterns.


Typically, if a chart shows a long lower or upper wick it signals price has found either support or resistance and a change in direction is likely to occur.


The chart below is currently showing up what I call “Tweezers”. Two candles both with long upper wicks which tell us seller are present and selling into the buying pressure. This is a great signal that lower prices are very possible. You should keep in mind that we are only half way through the month of December which means this candle still has another 10+ days of trading before it closes. So this is not a true tweeze pattern until the month is over.

DAILY CHART OF SUGAR & COT DATA

This chart below shows some very interesting data which one of my subscribers pointed out a couple weeks ago. I have been watching the price of sugar waiting for a potential setup to form and it looks as though the time has come which I will show in more detail later in this article.


What I like most about this information is the COT data. Specifically, the spec traders position which show the average joe/gamblers are all very bullish trying to get their sugar fix.


Typically, the small spec positions are based on emotions and when everyone is doing something, people don’t like to be left behind so they follow the herd mentality, BUY BUY BUY!


As you can see in the recent trading the price of sugar has been chopping around with increased volatility, which tells me sellers are entering the market.

DAILY CHART OF SUGAR TRADE SETUP

Below I have laid out visually the key resistance levels for sugar. Ideally, the sooner price breaks down the lower price is likely to fall as it will have strong momentum. If price lingers and moves above the $15 level for several days, then it won't be as bearish of a setup in my opinion.


The breakdown that I have drawn on the chart with red arrows shows the best case scenario. Unfortunately, there is not an inverse EFT for sugar. For one to profit from falling sugar you will need to short sell the sugar ETF SGG.

SUGAR TRADE SETUP CONCLUSION:

In short, I think sugar is/has setup for a short trade and will fall over the coming months. Nothing in the financial market is for certain, but I do like this trade setup for a small speculative position.