Micron(+6%) is beginning to show some life. At last month’s low, which marked the the lowest close since the summer of 2017, $MU tested its 40 week moving average. This key long time indicator has not been tested since December of 2016.
More: At last month’s low $MU had dropped over 55% from the 2018 peak. This extreme sell off drove the stock to oversold levels(weekly MACD) to its deepest reading since early 2001.
The daily MACD has been tracing out a bullish divergence since the October bottom.
Currently $MU is bumping up against a now flattening 50 day moving average. The 50 day held key monthly highs in August and December. Once this level is convincingly cleared the stock has plenty of room to run.
Micron received an upgrade this morning from Bernstein.
$MU has a solid support zone in place between $34.50 and $33.00. We consider the stock a low risk buy on weakness. A close back below this week’s low($32.80) would indicate the 50 day moving average is still in control.
At time of publication we are long Micron in some managed accounts.