Micron Technology (MU) Shares Surge by Approximately 15%
The US stock market is experiencing positive momentum following the much-anticipated decision by the Federal Reserve to cut interest rates this month. The S&P 500 (US SPX 500 mini on FXOpen) closed at a new all-time high, driven by yesterday's news of:
Steady US GDP growth at 3% annually
Low unemployment, with 218K jobless claims filed last week (forecast = 224K, previous = 222K).
One of the top performers on the stock market yesterday was memory chip maker Micron Technology (MU). As seen on the MU stock chart, yesterday's candle closed around the $110 level, up from below $95 at the start of the week.
The strong bullish momentum was driven by Micron Technology's quarterly earnings report. According to Barrons:
Earnings per share reached $1.18 for the fourth fiscal quarter, beating analysts forecasts of $1.11;
Revenue grew by 93% year-on-year to $7.75 billion;
Micron Technologies expects revenue next quarter to be $8.7 billion, surpassing forecasts of $8.3 billion and significantly more than $4.73 billion for the same period last year;
Micron Technologies' CEO Sanjay Mehrotra stated that demand for AI "drove a strong ramp of our data-center DRAM products and our industry-leading high-bandwidth memory."
Technical analysis of the MU stock chart shows that the price is moving within an upward channel (marked in blue). Key points include:
In early September, a Rounding Bottom pattern formed near the lower boundary of the channel a bullish sign;
In yesterday's broad bullish gap, the price exceeded the key $109 level, which previously acted as both support and resistance (indicated by arrows).
Bearish Outlook for MU Shares: Supply forces may emerge around the $109 level, forming a false bullish breakout, with the possibility of testing the psychological level of $100.
Bullish Outlook for MU Shares: Strong company fundamentals and a bullish stock market could drive MU shares towards the median of the upward channel.
According to TipRanks, Wall Street analysts forecast an average target price for MU shares of around $150 over the next 12 months.
Read more: https://fxopen.com/blog/en/oa-micron-technology-mu-shares-surge-by-approximately-15/
Text source: Forex Trading Blog
