GUNNER24 Trade of the Day 01/05/2018
Buy Micron Technology at 44.95
Dear GUNNER24 Traders,
Buy Micron Technology at 44.95
Micron Technology, Inc. (MU) is a well-known NASDAQ listed company and provides semiconductor systems worldwide.
Key-Stocks must always be monitored in order to anticipate possible changes in the overall market. And now, it`s quite clear that the Semiconductor Leader has begun another, probably quite powerful upward movement which looks as if it could last well into February, but in any case, the MU upcycle should continue until the end of January. Accordingly, the US stock markets could also be similarly supported until the next deeper correction could start. Hmm...
This is a textbook 8 Candle up that starts at # 1-low which is 2017 summer low. Within 16 weeks without a pullback, the stock nearly doubled and printed final 2017 high at 49.89$ which is strange or suspicious because the magic "50$" mark was not reached at 2017 top. Therefore, I strongly assume that the current uptrend in all cases will test = work off the 50$!!!!! MU in course of 2018 HAS TO TEST 50$ Gann number upmagnet!!!
# 15 + # 16 closed far above 1st double arc, accordingly lower line of 2nd double arc is activated uptarget for the rally. Likelihood that lower line of 2nd uptarget will be worked off the next few weeks is far above 80%.
The pullback which began at 2017 high has respected some important GUNNER24 Items. Pullback low A) successfully tested back Blue Arc to the T from above. Lower line of 1st former resistance was pinpoint tested from below at B).
This week is # 22 of uptrend which began at # 1 and current week candle = first week in 2018 will close far above 1st resistance environment. Thus, there are no important barriers in the weekly scale which preclude the rather speedy processing of the weekly GUNNER24 Uptarget:
==> Shortterm uptarget is lower line of 2nd. Uptarget should/could be worked off in course of January 2018. Shortterm uptarget at 51.75$!
This week # 22-top has tested important Resistance Angle from below. This week high pinpoint made at important weekly resistance offers a 3-5 days lasting pullback which could test back 1st double arc main support environment.
==> Please buy a possible next week pullback at 44.95$! Please buy MU at 44.95$ until next week Friday, 12th of January 2018!
Before we switch to the monthly scale and analysis of current valid bull market GUNNER24 Up in the monthly, please notice that upper line of 2nd possible uptarget is at 53.90$ surroundings for Feb18. So 54$/February 2018 is existing upmagnet for this bull market. A week close above 52.10$ in course of January activates a test of upper line of 2nd magnet, likely in course of February.
==> MU 54$ is weekly upmagnet resistance for February 2018.
The monthly GUNNER24 Up Setup above starts at the important May 2016 double low and measures a 13 Fib number bull leg.
October as November 2017 candles have closed above upper line of 1st, thus lower line of 2nd is activated GUNNER24 Bull Market target. And that upmagnet is at 54$ for the next few candles.
54$ is a combined weekly and monthly uptarget. Thus, its a main target. For the Feb18 candle, the lower line of 2nd upmagnet is at 53.90$.
The 2017 High spiked above nicely holding (on monthly closing base) Resistance Angle which is a yearly resistance trail because angle was responsible resistance of the final highs of the years 2016 + 2017. Watch when Resistance Angle is intersecting the lower line of 2nd. At Feb18 candle. At 53.90$.
So we have weekly upmagnet, monthly upmagnet and yearly upmagnet at 53.90$ for February 2018. This combination offers intermediate bull market top then and there!!!
==> 53.90$ is 2018 main uptarget for MU!
==> We open a MU long positions at 44.95$ until next week Friday. Strong weekly support area and quite normal pullback area regarding price and time factor!
==> Again we skip the SL for this trade setup. MU is a huge buy until shortterm uptarget at 51.75$ is worked off!
GUNNER24 Trade of the Day orders for 01/05/2018:
Market: Micron Technology, Inc. (MU)
Orders: Buy-Limit at 44.95. No Stop-Loss (SL)!! Shortterm uptarget at 51.75. 2018 main uptarget at 53.90. Buy-Limit order valid till 01/12/2018.
Markets, Money Management and Trade Size
I will merely analyze the market. There are so many instruments in the world outside our GUNNNER24 Traders use to trade, and hundreds of popular ones among them, often depending on a trader’s time horizons... I don’t consider me able to adjust the market recommendations to all the popular ETFs, different CFD or futures contracts. All I’ll analyze is pure market action - the index, stock or most current contract and forex!
The trade size you should use depends.
A) On your account size:
I usually follow the rule of thumb which says, never bet more than 1% of your account size for each trade. So I avoid overtrading...
Let’s say you have got a 30.000US$ account granting you a nominal buying power of 300.000US$ up to 500.000US$ and even more, depending on your broker and instrument. In that case your trade size shouldn’t be more than 3.000US$-5.000US$ taking into account your buying power.
Another - more conservative - method is taking into account the available margin. Usually, 30.000US$ account value equals 30.000US$ available for margin trading. So the trade size is 300US$ taking into account the margin.
Within Trade of the Day I ask you not to bet more than this 1% per any trade.
The other point to consider for determining the trade size is:
B) if your trading style is rather active, supposing you regularly have 30-50 open trades, just as I have - CFD/ETF, here some stocks, there a future contract. So I often trade risky somehow, but I split the money/bets. Even in such a nice trend as the stocks are showing currently, I never ever trade too risky. I never load the boat with 70% let 90% of my account size. 50% is the maximum.
I trade for my living and for my kids and wife as well. A regular income is important. The big-bang bet isn’t! The market would win such a big-bang bet for sure!!
When I have a lot of open trades, maybe up to this 50% of my account size/available margin I avoid trading more. So if you are an active trader having a lot of trades running at rev limiter (50% account size) please avoid trading even though we/I give you some fresh recommendations, because this would rise YOUR risk!... During the test phase that happened frequently. We had 3-5 open trades sometimes and that’s why it’s elementary important that we/you have to use tight SL. Order management is absolutely crucial for Trade of the Day.
You’ll have to place really each and every order accordingly, you know. Forgetting only one time the SL would make this trade getting worse and worse…
Based on the George Douglas Taylor Trading Technique that I’ve been studied and originally traded for years transferring it onto the modern markets by constant observation a five day pattern of the single days of the week has resulted.
The crux is not so much that the entire week has to work perfectly. Perhaps it does just at a 50% because the day patterns may shift by one or two days. In the strong upwards trends sometimes you see 4 buy days and only 1 sell day. It’s important to recognize that the day proceeds ideally-typically and to trade accordingly.
My personal trading style has always been the contrary to that of the crowds because the crowds always loose. Especially in gold and silver trading I like to buy the corrections Monday to Wednesday and on Friday if the day patterns correspond with some important GUNNER24 Signals.
I use to go short intraday just on Thursday when the week high is sold off AND provided that the corresponding GUNNER24 Setups signal so covering the shorts when the cycle is resumed.
The ideal five day pattern in an upwards trend – precious metals and US stock market – Do use those patterns for your intraday and swing activities!
Monday: Buy day. Strong up-day. Low established first. It often ends at the day high. Unthinkingly you may buy all the intraday corrections because the week high comes later in the course of the week.
Tuesday: Buy day. Weaker up-day. A higher high is produced. As early as now the crowds ponder whether the prices mightn’t run too high partially going short already. For me it’s the day when I can cover my Friday and Monday longs. In intraday I try to go long in case of corrections until the Comex opening.
Wednesday: Sell day. Actually the day for covering the longs and for the first short entry. It’s got some different forms. It closes at the same level as it had opened. Frequently at first the high is established because more and more traders short the market. Here the longs fight against the shorts. You recognize that if many teeth, many nicks, many spike candles are to be seen in the chart. On Wednesday I use to do nothing. Only at a 20 to 30% the shorter hearts are pleased because during the whole day there’s only sell-off.
Thursday: The classical sell short day. Because the Wednesdays often close as they had opened the market participants have to cover their shorts because in the beginning the market runs quickly upwards…! And frequently they turn their positions into the high direction being caught on the wrong trail again. Then the market often lays down a beautiful sell-off. In the evening mostly a strong rally follows. That’s where we cover the shorts.
Friday: Classical buy day in the upwards trend. It’s nothing for weak hands. Here’s where you buy the positions near the Thursday lows which you cover again next Tuesday/Wednesday. If you discover that the prices have steadied or even are rising a little bit by closing the five day cycle should continue in the following week.
In the charts we work with the following symbols: