Micron Technology Stock Shows Bullish Momentum in Technical Analysis

StockInvest.us, 1 week ago

Micron Technical Analysis

Micron Technology, Inc. (NASDAQ: MU) closed at $136.39 on July 10, 2024, a 4.00% increase from the previous close. The stock fluctuated between $132.70 and $136.48 during the trading day. Notably, its RSI14 is at 31, indicating that the stock may be oversold. The 50-day and 200-day moving averages stand at $129.40 and $97.05, respectively, suggesting a bullish trend despite recent volatility. The MACD (3-month) of 2.86 further reinforces bullish momentum. Support and resistance levels are found at $132.23 and $139.54, respectively. The Average True Range (ATR) of 3.91 suggests moderate volatility. Volume on the trading day was 21.99 million, slightly above the average volume of 21.46 million.

Fundamental Analysis

On the fundamental side, Micron has a market capitalization of $151.23 billion. The EPS is -$1.42, and the PE ratio is -96.05, indicating current unprofitability. The company has its next earnings announcement slated for September 25, 2024, and a dividend yield of 0.09% with the next distribution set for July 23, 2024. The DCF value is calculated at -6.64, suggesting the stock is currently trading above its intrinsic value.

Recent news highlights the general upward trend in semiconductor sales and Micron’s continued expansion, which could further drive future growth. Despite its negative EPS and DCF, the bullish consensus among 27 analysts indicates growing confidence in its long-term performance.

Short-term Performance Prediction

Micron For the next trading day, given the positive momentum, the stock might test the resistance level of $139.54. The RSI suggests it is oversold, potentially attracting buyers and pushing the price higher. Moderate volatility is expected, aligning with its ATR, and volume trends indicate strong interest around current levels.

Throughout the upcoming week, the stock might continue to edge higher as it approaches the $139.54 resistance. However, if it fails to breach this level, a possible pullback to the $132.23 support could be observed.

Evaluation of Intrinsic Value and Long-term Potential

Despite the negative EPS and low intrinsic DCF value, Micron shows strong long-term potential driven by its role in the AI and semiconductor sectors. The positive market outlook for semiconductors, combined with consistent analyst confidence, points towards substantial long-term growth potential. Its year-low of $61.75 compared to the year-high of $157.54 reflects recovery potential and substantial investor confidence.

Overall Evaluation

In conclusion, Micron Technology, Inc. positions itself as a 'Hold' candidate. The short-term technical indicators reflect a bullish trend, but the negative EPS and DCF warn against an immediate surge in value. Long-term prospects are promising given the AI and semiconductor industry's growth, supported by analyst consensus. This analysis predicates that while the stock may experience near-term uptrend potential, investors might prefer to observe if it sustains above the crucial $139.54 resistance level before a stronger commitment.

Check full Micron forecast and analysis here.