Tomahawk, WI 9/04/2013 (BasicsMedia) –  Micron Technology, Inc. (NASDAQ:MU) (Closed: $14.01, Up: 3.24%) opened strong in the green on Tuesday and remained there for the rest of the session. The volume at 37 million was slightly lower than the average volume of 42 million. The volume pattern shows a surge in the last 2 months when the price has been range bound, implying a bit of distribution. But the price action still suggests a lot of upside remaining.

As the “technology” part in the name automatically suggests, it had its golden days in the 1990s indeed, prior to the IT bubble burst. It reached its lifetime high of $97.50 in 2000 from its 1990 bottom of only $1. As Schiller showed, this irrational exuberance would be corrected in a vicious manner if history was anything to go by. The bear market that started in 2000 never really ended for the stock. It lost all its gains and retested the 1990 bottom when it crashed to $1.59 by the end of 2008. The most violent part of the fall made a bottom at $6.60 in 2003. All attempts to rally faced strong sell off from the zone of $16 – $18. The price is close to this historical supply zone once again and for any sustained up move to take place, it must be overcome.

The price action from the 2006 top of $18.65 created a bullish Cup & Handle pattern and it was broken on the upside in May this year. The pattern gives us targets of $17.70, bang on the supply zone and $21.90. It has also broken out of a broader channel which gives us targets of $21.36 & $27.

The price is getting excellent support on the downside. So the investors could buy this stock on dips close to $12.50 & $10.50 levels for a target of $17.70 & $21 – $22 levels.

Sirius XM Radio Inc (NASDAQ:SIRI) – Facing Strong Resistance At $3.90-$4.05

Sirius XM Radio Inc (NASDAQ:SIRI) (Closed: $3.64, Up: 1.68%) opened in the green on Tuesday and remained flat in tight range of $3.59 – $3.64 to finally close at the high. The volume was absolutely lackluster at 27 million against an average of 50 million. It has created a bearish Head & Shoulder and it is flirting around the neckline at $3.60 for 5 consecutive sessions now, but still no real bearish momentum has been visible yet. It can’t be expected with this a low a volume too.

It was one of the most volatile stocks and one of the hardest to trade in the period of 1996 – 2000 when it rallied to $69 levels from a measly low of $3, but not without a lot of hiccups in the way. The rally was punctuated by a lot of very sharp drops requiring the investors to have nerves of steel. In the next 8 years, it ran the risk of going extinct as it hit $o.72 in a vertical crash by early 2003 and after a brief respite rally to $9 levels by 2004, it dropped again to $0.05, just a single tick away from going zero, in 2009.

From the 2009 bottom it has been a one way rally to $3.85 so far, taking just a pause in 2011 – 2012. This rise was nicely contained in a rising channel but the price has gathered more momentum and is moving in a channel with a steeper angle. It is hitting the upper boundary of this new channel repeatedly and can come down to test the lower boundary at $3.30 – $3.45 in the next few weeks. On the upside, resistance remains at the 50% retracement level of the entire fall from the 2005 top at $4.03 & the supply zone at $3.90 levels below that.

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