Chart of the Week: Micron Technology
Hey good morning everybody. Time for our chart of the week, December 2. We’re gonna focus in on chip name, chip equipment name, Micron; MU is the symbol. Let’s take a look at this chart. It’s been pretty strong for the past six, seven months here.
So as you can see here, the stock really rallied nicely off of those lows in April. In fact, in April it was around $65. We’re all the way up to roughly $240 right now. And you can see on that trend line over here, it tested it a couple of times back in August – early August and late August – and really vaulted higher in September. Had a great month in September and October.
This last month of November, came back down to test that 50-day moving average, which coincidentally, it was an area it tested the trend line and the 50-day moving average equally at the end of September, where it was a launch point.
So we are not at the trend line. Obviously that trend line you can see is all the way down at $170. I don’t think we’re gonna get that tested unless earnings are really poor. They will report sometime in the middle of December.
We did see some heavy volume in November, especially when the stock was selling down. But that’s normal when we see a stock in an uptrend like it’s been since early September. It went from about $120 up to about $260 – a more than 100% move in two and a half months.
Normal to see a little bit of a retracement here. You can see I locked in here the Fib[oncacci] retracements from back in September to the highs in early November. And you can see here clearly that a 38% retracement was spot-on with that pullback down to the 50-day moving average, let’s call it at about $204-208.
So once that launch point happened here, we followed through a couple of days last week, we’re moving on up. So we think that once it breaks through those old highs – let’s call it about $252-255 – I think this stock’s got room to about $300. That’s right, $300 for Micron. Take a look at this one.
The on-balance volume at the bottom over here is super strong, which tells you on the up days, the heavy volume is coming in when the stock is posting a positive reading.
MACD is almost ready for a buy signal here – it’s gonna take a couple more days. And it’s not overbought – nor oversold – right here. Once it blasts through this old high, it’s gonna be taking off.
So take a look at Micron; MU is the symbol. Thanks so much for watching everyone, and I’ll see you guys next time.
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