Micron (MU)

[admin]

Let's see what happens:

Micron Technology, Inc. (MU) could break higher or lower and presents a viable trade in either of those directions. In 2016 the stock has been rising, up 85% from the January low of $9.31. Since the start of September, the stock has moved sideways between $18.33 and $16.14. The recent upside momentum favors a breakout above the range high, pushing the price at about $20. Over the longer-term, the stock has been weak, currently trading at less than half of its 2014 high ($36.59). A drop below the range low at $16.14 aligns with that longer-term weakness, and a deeper pullback is also likely following the strong run higher seen this year. A drop below the range is likely to push the price down to the $14 region.

[admin]

The static chart for Thu Feb 23 end of market:

Another chip stock with a terrific bull run, will the uptrend channel provide support?

Here is the dynamic chart so we can see the outcome in (semi) real-time:

[admin]

Well, on Monday morning (Feb 27) it looks like we'll get back into the rising channel and support is going to hold.

[admin]

More musing today on the prospect of “peak” Micron Technology (MU) in advance of its earnings report on Thursday afternoon. Mehdi Hosseini of Susquehanna reiterates a “Positive” rating on the stock, and says with the company’s profit possibly peaking the second half of this year, managing down costs of manufacturing seem key.

Hosseini acknowledges “consensus is now focused on whether history repeats itself.” meaning the fall of Micron stock at the end of 2014. “In this context, and since MU’s past execution is viewed as a mixed bag, we argue that continued execution on the cost curve could not only drive higher peak earnings, but could also meaningfully benefit investor perception.”

See also yesterday’s view by Romit Shah of Instinet. Micron shares are up 14 cents, or half a percent, at $26.35.

Tech Today: Apple’s Ho-Hum Update, ‘Peak’ Micron? Ciena’s Potential - Tech Trader Daily - Barrons.com