Potential Trendline Breakout in Micron Technology
Micron Technology has held up better than most big technology stocks. Now it could be showing some interesting patterns to the bulls.
First, consider how the memory-chip maker’s low in 2022 is $65.86, or $0.19 above the level where it bottomed in October. In contrast the broader
Philadelphia Semiconductor Index recently hit levels from March 2021. MU’s ability to hold its fourth-quarter highs is a potential sign of relative strength.
Next you have the falling trendline that began in March 2022. Prices bucked this resistance in mid-May and now seem to have moved through it.
Third, the bounce has planted the stock above its 50-day simple moving average (SMA). The 8-day exponential moving average (EMA) is also above the 21-day EMA, which may indicate its short-term trend has turned bullish.
Finally, MU has a strong earnings history. It tried to rally after the last two reports but was swept lower along with the broader market. That may give buyers a reason to return to the company.
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First, consider how the memory-chip maker’s low in 2022 is $65.86, or $0.19 above the level where it bottomed in October. In contrast the broader
Philadelphia Semiconductor Index recently hit levels from March 2021. MU’s ability to hold its fourth-quarter highs is a potential sign of relative strength.Next you have the falling trendline that began in March 2022. Prices bucked this resistance in mid-May and now seem to have moved through it.
Third, the bounce has planted the stock above its 50-day simple moving average (SMA). The 8-day exponential moving average (EMA) is also above the 21-day EMA, which may indicate its short-term trend has turned bullish.
Finally, MU has a strong earnings history. It tried to rally after the last two reports but was swept lower along with the broader market. That may give buyers a reason to return to the company.
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. You Can Trade, Inc. is also a wholly owned subsidiary of TradeStation Group, Inc., operating under its own brand and trademarks. 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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