Micron Pulls Back After Breaking Out
Semiconductor stocks have been moving lately. Today’s chart focuses on memory-chip producer Micron Technology.
The first pattern to consider is the level around $64.30. MU peaked near this price in November, January, March and April. A breakout followed in mid-May followed by a pullback on Monday. Will buyers step in near the previous high, looking for old resistance to become new support?
Next, you have the series of higher lows over the last three months. That kind of ascending triangle may reflect increasing demand for the stock.
Third, MACD recently turned positive -- a potential sign of improving short-term momentum.
Finally, MU jumped on March 29 as analysts said its long-term demand cycle had bottomed. (The surge came despite weak earnings and revenue.) This month’s rallies in MU and the broader chip space may confirm the industry is back on the upswing. If that’s true, it could give investors another reason to target the $64.30 zone.
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This content is for informational and educational purposes only. This is not a recommendation regarding any investment or investment strategy. Any opinions expressed herein are those of the author and do not represent the views or opinions of TradeStation or any of its affiliates.
Investing involves risks. Past performance, whether actual or indicated by historical tests of strategies, is no guarantee of future performance or success. There is a possibility that you may sustain a loss equal to or greater than your entire investment regardless of which asset class you trade (equities, options, futures, or digital assets); therefore, you should not invest or risk money that you cannot afford to lose. Before trading any asset class, first read the relevant risk disclosure statements on the Important Documents page, found here: https://www.tradestation.com/important-information.
The first pattern to consider is the level around $64.30. MU peaked near this price in November, January, March and April. A breakout followed in mid-May followed by a pullback on Monday. Will buyers step in near the previous high, looking for old resistance to become new support?
Next, you have the series of higher lows over the last three months. That kind of ascending triangle may reflect increasing demand for the stock.
Third, MACD recently turned positive -- a potential sign of improving short-term momentum.
Finally, MU jumped on March 29 as analysts said its long-term demand cycle had bottomed. (The surge came despite weak earnings and revenue.) This month’s rallies in MU and the broader chip space may confirm the industry is back on the upswing. If that’s true, it could give investors another reason to target the $64.30 zone.
TradeStation has, for decades, advanced the trading industry, providing access to stocks, options, futures and cryptocurrencies. See our Overview for more.
Important Information
TradeStation Securities, Inc., TradeStation Crypto, Inc., and TradeStation Technologies, Inc. are each wholly owned subsidiaries of TradeStation Group, Inc., all operating, and providing products and services, under the TradeStation brand and trademark. TradeStation Crypto, Inc. offers to self-directed investors and traders cryptocurrency brokerage services. It is neither licensed with the SEC or the CFTC nor is it a Member of NFA. When applying for, or purchasing, accounts, subscriptions, products, and services, it is important that you know which company you will be dealing with. Please click here for further important information explaining what this means.
This content is for informational and educational purposes only. This is not a recommendation regarding any investment or investment strategy. Any opinions expressed herein are those of the author and do not represent the views or opinions of TradeStation or any of its affiliates.
Investing involves risks. Past performance, whether actual or indicated by historical tests of strategies, is no guarantee of future performance or success. There is a possibility that you may sustain a loss equal to or greater than your entire investment regardless of which asset class you trade (equities, options, futures, or digital assets); therefore, you should not invest or risk money that you cannot afford to lose. Before trading any asset class, first read the relevant risk disclosure statements on the Important Documents page, found here: https://www.tradestation.com/important-information.
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