Micron Technology (MU) Runs Higher, as Markets Plunge

12:58 10/11/2018

Apparently, Micron MU  is back in the buy zone. Even as markets sink, the stock is picking up momentum, up $1.11 to $42.72. One reason for the move is just how oversold the stock has become. For example, the stock is holding double bottom support around $42 a share. As long as that line in the sand holds, we believe it could recovery to $54, near-term. Not only is it at its lower Bollinger Band (2,20), it’s wildly oversold on Williams’ %R and MACD. The last time MU was this low, it rallied to $62. Also, months ago, billionaire Ken Griffin, who manages the $30 billion Citadel Fund just increased his position in MU by nearly 200%, as well. He picked up 5.6 million shares, bringing the fund's total stake in MU to 8.48 million shares. It’s also running on news that Piper Jaffray initiated coverage with a $48 price target. According to Barron’s, analysts want “to see more clarity of inventory trends, trade-war ramifications, and the overall trajectory of the memory market…” We must also take into consideration the longer-term demand on computing and storage needs. While revenues and earnings may not be exemplary near-term, memory products will see heavy demand with 5G, AI, self-driving cars, and the Internet of Things (IoT). At less than $43, the fear may have created quite an opportunity for long-term investors.

This article has been provided by a Chasing Markets contributor. All content submitted by this author represent their personal opinions, and should be considered as such for entertainment purpose only. All opinions expressed are those of the writer, and may not necessarily represent fact, opinions, or bias of Chasing Markets.
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