Micron Technology, Inc. (NASDAQ:MU) Stock Is a Strong Buy Ahead of Earnings

Micron Technology, Inc. (NASDAQ:MU) Stock Is a Strong Buy Ahead of Earnings

Micron Technology, Inc. (NASDAQ:MU) Stock Is a Strong Buy Ahead of Earnings

Shares of Wall Street superstar Micron MU opened slightly lower on Monday, just two days before the company is set to release its third-quarter fiscal 2018 financial results. So let’s take a look to see why the semiconductor giant looks like a strong buy stock that investors might want to consider scooping up before Micron reports on Wednesday afternoon.

Recent News

J.P. Morgan JPM analysts reiterated their overweight rating for Micron stock on Monday, pointing directly to strong demand for memory in the cloud computing market. The analyst also reaffirmed his $82 price target, which marked a 41% upside from Friday’s closing price of $58.23 per share.

“Stay long Micron heading into earnings,” Harlan Sur wrote in a note to clients. “We see further upside in Micron shares as the team is executing well in an overall constructive S/D [supply/demand] memory environment… demand fundamentals likely to remain strong driven by robust cloud data center spending.”

Overall, the bias in prices is: Upwards.

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

The projected upper bound is: 63.36.

The projected lower bound is: 53.94.

The projected closing price is: 58.65.

Candlesticks

A white body occurred (because prices closed higher than they opened).
During the past 10 bars, there have been 3 white candles and 7 black candles for a net of 4 black candles. During the past 50 bars, there have been 25 white candles and 25 black candles.

Momentum Indicators

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 23.8324. This is not an overbought or oversold reading. The last signal was a sell 4 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 52.45. This is not a topping or bottoming area. A buy or sell signal is generated when the RSI moves out of an overbought/oversold area. The last signal was a sell 12 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 -97. This is not a topping or bottoming area. The last signal was a sell 12 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 sell 9 period(s) ago.

Rex Takasugi – TD Profile

MICRON TECH closed up 0.220 at 58.450. Volume was 33% below average (neutral) and Bollinger Bands were 48% narrower than normal.

Open High Low Close Volume___
57.600 58.600 56.870 58.450 36,975,632

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

Moving Averages: 10-period 50-period 200-period
Close: 59.77 54.15 46.62
Volatility: 24 56 56
Volume: 42,328,764 49,128,964 45,958,256

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 25.4% above its 200-period moving average and is in an upward trend. Volatility is low as compared to the average volatility over the last 10 periods. Our volume indicators reflect volume flowing into and out of MU.O at a relatively equal pace (neutral). Our trend forecasting oscillators are currently bullish on MU.O and have had this outlook for the last 25 periods.

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