Is Micron Finally Ready to Move?On Tuesday, we cited the pullback in the Philadelphia Semiconductor Index. Today, we’re looking at a member stock that’s been dead in the water all year: Micron Technologies.
Worries about the Covid recession have dragged on the memory-chip maker, despite strong results. Analysts at Deutsche Bank and Citi also think pricing will improve over the winter.
MU’s chart has some potential positives for the bulls. First is the falling trendline between the February and July highs. It broke that line three weeks ago and is now revisiting it as support. (Similar to the iShares Trust China Large-Cap ETF pattern on Monday.)
Second, MU’s 50-day simple moving average (SMA) just rose above its 200-day SMA: a “golden cross.”
There are also potential fundamental tailwinds given the strong industrial data this week from the U.S. and China, plus the upcoming iPhone 12 ramp. Traders may want to keep an eye on MU for a potential breakout.
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