Micron is one of those dinosaur tech names that has been killed by its competitors and naysayers over and over again. But they are survivors, and while their DRAM product is a commodity business, the company continues to evolve with the times. Recently, the stock hit bottom on the charts but it may now be coming back in a big way.
The decline in early January was devastating; strong volume and massive selling brought the stock to its knees. This was a capitulation from enormous pressure it faced in the fall, and we can see that long downtrend line is still in play. However, once the bottom hit in mid-January, Micron was on the road to recovery. The channel is well-defined, which we see as higher lows and higher highs emerge. Volume has picked up, but what’s really notable is the strong move over the 50 ma (arrow).
Relative strength shows a nice uptrending slope too, but resistance is dead ahead. The crossroad appears to be around the 12.75 level, about 10% higher than Monday’s close. At that point it’ll be decision time, but the bias seems to be towards a move higher.
Micron Tech (NYSE: MU) Video Chart Analysis
Take a deeper dive into the chart action on NYSE: MU and learn how to read the technicals. Get Bob Lang’s full analysis as he marks up our chart of the week.
Love what you’re learning in our market analysis? Don’t miss a single video! Get the latest chart action delivered directly to your inbox every week as Bob breaks down stocks to watch and potential trade options!
About Micron Tech
Micron Technology, Inc. provides semiconductor systems worldwide. It operates in four segments: Compute and Networking Business Unit, Mobile Business Unit, Storage Business Unit, and Embedded Business Unit. The company offers DDR4 and DDR3 DRAM products for computers, servers, networking devices, communications equipment, consumer electronics, automotive, and industrial applications; mobile low-power DRAM products for mobile phones, tablets, embedded, computers, and other mobile consumer device applications; DDR2 DRAM, DDR DRAM, GDDR5 DRAM, SDRAM, reduced latency DRAM, and pseudo-static DRAM products for use in networking devices, servers, consumer electronics, communications equipment, computer peripherals, automotive and industrial applications, and computer memory upgrades; and HMC semiconductor memory devices for use in networking and computing applications