Micron Technology, Inc. (NASDAQ:MU) HEFFX Highlights

Micron Technology, Inc. (NASDAQ:MU) HEFFX Highlights

Micron Technology, Inc. (NASDAQ:MU) HEFFX Highlights

  • Chip stocks have been on fire this year, and one technician says the hottest name in the group is showing no signs of cooling off.
  • Micron is the best-performing technology stock this year, up nearly 120 percent, and according to Rich Ross of Evercore ISI, the stock has could rally another 25 percent from current levels.
  • “There’s been no stronger trend than semiconductors and technology, and this is the strongest stock within the group,” he said Monday on the “Trading Nation” segment of CNBC’s “Power Lunch.”
  • “We think it’s going to [$60] here by virtue of that multiyear base breakout … the trend has not even come close to exhaustion,” he added. That’s roughly $15 higher than where the stock is trading, and would put the stock at its highest level in 17 years.

Micron Technology, Inc. is engaged in semiconductor systems. The Company’s portfolio of memory technologies, including dynamic random-access memory (DRAM), negative-AND (NAND) Flash and NOR Flash are the basis for solid-state drives, modules, multi-chip packages and other system solutions. Its business segments include Compute and Networking Business Unit (CNBU), which includes memory products sold into compute, networking, graphics and cloud server markets; Mobile Business Unit (MBU), which includes memory products sold into smartphone, tablet and other mobile-device markets; Storage Business Unit (SBU), which includes memory products sold into enterprise, client, cloud and removable storage markets, and SBU also includes products sold to Intel through its Intel/Micron Flash Technology (IMFT) joint venture, and Embedded Business Unit (EBU), which includes memory products sold into automotive, industrial, connected home and consumer electronics markets.

Overall, the bias in prices is: Upwards.

Short term: Prices are moving.

Intermediate term: Prices are trending.

Note: this chart shows extraordinary price action to the upside.

By the way, prices are vulnerable to a correction towards 41.44.

The projected upper bound is: 52.58.

The projected lower bound is: 47.39.

The projected closing price is: 49.98.

MICRON TECH closed up 0.540 at 49.680. Volume was 55% below average (consolidating) and Bollinger Bands were 51% wider than normal.

Open           High           Low             Close        Volume
49.320        49.880       49.030       49.680      14,203,317

Technical Outlook
Short Term: Overbought
Intermediate Term: Bullish
Long Term: Bullish

Moving Averages: 10-period         50-period          200-period
Close:                      46.97                 41.54                   32.02
Volatility:               29                       41                         41
Volume:                 26,914,946        35,537,288        29,573,642

Short-term traders should pay closer attention to buy/sell arrows while intermediate/long-term traders should place greater emphasis on the Bullish or Bearish trend reflected in the lower ribbon.

Summary

MICRON TECH is currently 55.1% above its 200-period moving average and is in an upward trend. Volatility is relatively normal as compared to the average volatility over the last 10 periods. Our volume indicators reflect moderate flows of volume into MU.O (mildly bullish). Our trend forecasting oscillators are currently bullish on MU.O and have had this outlook for the last 67 periods. Our momentum oscillator is currently indicating that MU.O is currently in an overbought condition. The security price has set a new 14-period high while our momentum oscillator has not. This is a bearish divergence.

Momentum is a general term used to describe the speed at which prices move over a given time period. Generally, changes in momentum tend to lead to changes in prices. This expert shows the current values of four popular momentum indicators.

Stochastic Oscillator

One method of interpreting the Stochastic Oscillator is looking for overbought areas (above 80) and oversold areas (below 20). The Stochastic Oscillator is 91.3580. This is an overbought reading. However, a signal is not generated until the Oscillator crosses below 80 The last signal was a sell 14 period(s) ago.

Relative Strength Index (RSI)

The RSI shows overbought (above 70) and oversold (below 30) areas. The current value of the RSI is 78.83. This is where it usually tops. The RSI usually forms tops and bottoms before the underlying security. A buy or sell signal is generated when the RSI moves out of an overbought/oversold area. The last signal was a sell 6 period(s) ago.

Commodity Channel Index (CCI)

The CCI shows overbought (above 100) and oversold (below -100) areas. The current value of the CCI is 142.This is an overbought reading. However, a signal isn’t generated until the indicator crosses below 100. The last signal was a sell 6 period(s) ago.

MACD

The Moving Average Convergence/Divergence indicator (MACD) gives signals when it crosses its 9 period signal line. The last signal was a buy 7 period(s) ago.

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John Heffernan

John Heffernan is an Analyst at HEFFX. John is a BSc in Economics with Honors from the University of Buckingham, and is a contributor on equities at Live Trading News.

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