Micron Oversold After Testing Dotcom Highs
Micron Technology has stalled after a big rally. Is it time to buy the dip?
The first pattern on the memory-chip maker’s chart is the oversold condition on stochastics. Given its current uptrend, strong fundamentals and positive macro backdrop (GDP +6%), that pullback alone is interesting.
Next is a trend line running along the lows of January 27 and March 25. It held that line last week.
Third, consider the $96.96 level where MU peaked on April 12. That was its highest level since July 2000, when the stock hit a record price of $97.50. It’s not a surprise to see the shares pause around that old resistance – especially because it’s also near the $100 mark.
Overall, MU is a conventional macro/momentum story. It’s roughly doubled since the summer lows but has always been viewed as a highly cyclical chip play. Earnings have been strong for several quarters and it now has the added catalyst of automotive demand increasing.
TradeStation is a pioneer in the trading industry, providing access to stocks, options, futures and cryptocurrencies. See our Overview for more.
The first pattern on the memory-chip maker’s chart is the oversold condition on stochastics. Given its current uptrend, strong fundamentals and positive macro backdrop (GDP +6%), that pullback alone is interesting.
Next is a trend line running along the lows of January 27 and March 25. It held that line last week.
Third, consider the $96.96 level where MU peaked on April 12. That was its highest level since July 2000, when the stock hit a record price of $97.50. It’s not a surprise to see the shares pause around that old resistance – especially because it’s also near the $100 mark.
Overall, MU is a conventional macro/momentum story. It’s roughly doubled since the summer lows but has always been viewed as a highly cyclical chip play. Earnings have been strong for several quarters and it now has the added catalyst of automotive demand increasing.
TradeStation is a pioneer in the trading industry, providing access to stocks, options, futures and cryptocurrencies. See our Overview for more.
Related publications
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.