MU is currently in a pullback phase; avoid buying now and wait for a recovery/higher low to improve risk-reward before entering.

We saw, of course, Micron's earnings announcement, and things went exactly as I expected; the index dropped back to the key attention level we talked about earlier, which... It served as a pivot point at its low and its 20-day moving average. We tested that during the post-earnings trading session, buyers regained control by breaking above the daily volume-weighted average price (VWAP). This is what I had prepared for Alpha Trends subscribers on Thursday evening: I wanted to see the price pull back to this VWAP level, and it is now there. Of course, we don't want to buy on the dip; we want to wait for the price to recover after the dip. So, if we look at this, for example, on a 5-minute timeframe or a 10-minute timeframe, there's no need to get into the specifics, but this is essentially the earnings level, the pivot point. We might see a slight dip below it on Monday, which could raise some doubts, and this was Friday's VWAP level. So, what we would like to see is for the price to converge and fluctuate between these two levels and then break out. Currently, I think it's still necessary to place a stop-loss order below Thursday's low, but that level is still far away. That's why I haven't Buy the stock now, as it's still in a pullback phase. If we see a similar situation and enter the market aggressively, it might be more appropriate to place a stop-loss order below this level. That's why I'm hoping for a pullback on Monday morning, which would create a higher low that could serve as a stop-loss zone, rather than a drop to this level. This, in turn, creates a better risk-reward balance, as we're not risking all of that extra loss, but only a third of what we would risk if the stop-loss were below this level. That's why we're waiting for this tight situation to emerge and being patient to see how it develops.