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- 1 Micron Technology’s stock price closed at $70.50 while witnessing a gain of 0.89% during the last intraday session.
- 2 Deutsche Bank analyst upgraded shares from hold to buy, increasing the price target from $65 to $85.
- 3 Taiwan Semiconductor Manufacturing Company (TSMC) has instructed major suppliers to postpone the delivery of high-end chip-making equipment, causing a downfall in Micron Technology.
Micron Technology (MU) stock has been in an uptrend since the beginning of 2023, forming higher lows and rising from the low of $49.55. The year-to-date return of MU stock is 39.44%, and the annual high is $74.77.
Recently, the stock price formed support at $62 and commenced a bullish rally, hoping to shatter the annual high, but the price got stuck near the resistance level of $72.
Micron Technology stock has been printing bearish candles amidst demand uncertainty for the last two days. If MU stock can break below the minor support of $69.40, the stock price might fall toward the bullish trendline for a retest and form a support at $66.20.
On the other hand, if Micron Technology can form a support at $70, it might retest $72 and potentially rise to shatter the annual high.
Deutsche Bank Upgrades Micron Technology To Buy
On the last trading day (15 September), MU stock price rallied 0.89% after a Deutsche Bank analyst upgraded the stock to “buy” from “hold” as DRAM chip prices are rising faster than expected.
Deutsche Bank analysts also increased the price target from $65 to $85, implying an increase of roughly 20.50% from its closing price on September 18, 2023.
There has been recent strength in DRAM, or dynamic random access memory prices, which are sustainable and should accelerate in the next two quarters. Analyst Sydney Ho believes that Micron will guide first-quarter revenue and earnings above the current Wall Street estimates.
After the closing bell, Micron will report its quarter 4 earnings on September 27, 2023. The consensus has estimated the earnings per share to be -$1.149 and the revenue to be $3.932 Billion. Since the past three quarters, the semiconductor company’s net income has been negative.
Will MU Stock Form a Support at $70?
The stock price has surged above 20, 50, 100, and 200-day exponential moving averages, indicating strong bullish momentum. The Chaikin money flow (CMF) score is 0.06, implying a slight strength in the market.
The relative strength index trades above the 50 neutral mark and currently stands at 58.64, indicating a strong confluence of bears over the price. The Bollinger bands have expanded, suggesting a rise in volatility.
Conclusion
Micron is gaining confidence in the competitiveness of its 1-beta DRAM technology. MU stock’s market structure and price action are overall bullish but it is facing a hurdle near $72 and needs to cross it to continue rising further.
Technical Levels
Major support: $69.40 and $62
Major resistance: $72 and $74.80
Disclaimer
The views and opinions stated by the author, or any people named in this article, are for informational purposes only. They do not establish financial, investment, or other advice. Investing in or trading crypto assets comes with a risk of financial loss.
Mr. Pratik chadhokar is an Indian Forex, Cryptocurrencies and Financial Market Advisor and analyst with a background in IT and Financial market Strategist. He specialises in market strategies and technical analysis and has spent over a year as a financial markets contributor and observer. He possesses strong technical analytical skills and is well known for his entertaining and informative analysis of the Financial markets.
