The low at the beginning of August was notable; the elevated volume signaled a capitulation. Enter the big institutional buyers, who started to gobble up the stock as the rest of the market just stood around waiting for a market correction (note the powerful money flow at the bottom of the chart).
Now it’s up 50%, and after stellar earnings came out last month, it has some strong momentum. Is this move big enough to kill off the long-term buyers? Not in this bull market. Just look at the steep channel where the stock has been uber strong. It is also backed by fantastic relative strength and a slope in the MACD that is enviable.
I like Micron for even higher prices into the end of the year – perhaps near the 50 level.
Micron (NYSE:MU) Video Chart Analysis
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Micron Technology, Inc. provides semiconductor systems worldwide. The company operates through four segments: Compute and Networking Business Unit, Storage Business Unit, Mobile Business Unit, and Embedded Business Unit. It offers DDR3 and DDR4 DRAM products for computers, servers, networking devices, communications equipment, consumer electronics, automotive, and industrial applications; mobile low-power DRAM products for smartphones, tablets, automotive, laptop computers, and other mobile consumer device applications; DDR2 and DDR DRAM, GDDR5 and GDDR5X DRAM, SDRAM, and RLDRAM products for networking devices, servers, consumer electronics, communications equipment, computer peripherals, automotive and industrial applications, and computer memory upgrades; and hybrid memory cube semiconductor memory devices for use in networking and computing applications. The company also provides NAND Flash products, which are electrically re-writeable, non-volatile semiconductor memory devices; client solid-state drives (SSDs) for notebooks, desktops, workstations, and other consumer applications; enterprise SSDs for server and storage applications; managed multi-chip package products; digital media products, including flash memory cards and JumpDrive products under the Lexar brand name. In addition, it manufactures products that are sold under other brand names; and resells flash memory products that are purchased from other NAND Flash suppliers. Further, the company provides 3D XPoint memory products; and NOR Flash, which are electrically re-writeable and semiconductor memory devices for automotive, industrial, connected home, and consumer applications.