Monitor These Micron Price Points Following Stock’s Leadership in AI-Driven Chip Surge

Key Takeaways

Micron Technology (MU) stocks are likely to be of interest on Tuesday following a significant surge in the chip sector, driven by positive sentiment around sustained artificial intelligence (AI) demand fueling industry growth throughout the year.

The uptick on Monday was prompted by Foxconn’s impressive fourth-quarter earnings due to the soaring need for AI servers, alongside Microsoft’s recent commitment to allocate $80 billion towards data centers by fiscal 2025 to support AI advancements.

Micron Poised to Benefit from AI Infrastructure Demand

Micron, a leading memory chip manufacturer, is well-positioned to capitalize on the growing demand for AI infrastructure. Its silicon is utilized in the latest AI processors developed by industry giants like Nvidia and Advanced Micro Devices.

Micron Stock Soars

The share price of Micron surged by 10.5% on Monday, closing at $99.26. Within just three trading sessions this year, the stock has witnessed an 18% gain, significantly outperforming the iShares Semiconductor ETF’s 6% return during the same period.

Analyzing Micron’s Chart with Technical Analysis

Here, we delve into Micron’s chart and leverage technical analysis to pinpoint crucial price levels that warrant attention.

Stock Bounces Back From Crucial Support Level

Following a low point in early August, Micron’s stocks have maintained a rangebound pattern, which has helped in defining clear support and resistance levels on the chart.

Recently, the stock experienced a gap down in mid-December but quickly attracted buyers near the swing lows of August and September. Notably, the rally on Monday from this critical support level occurred with the highest trading volume since mid-December, indicating strong buying interest and conviction in the upward movement.

Identifying Key Overhead Areas

Exploring various crucial overhead areas that could impact the stock’s momentum if it continues to rise.

Highlighting Important Support Levels

Discussing significant support levels that may offer backing in case of downward movement or dips in the stock price.

Key Areas of Interest for Overhead Resistance

If follow-through buying continues, the shares could potentially reach the $110 mark, where they might encounter resistance from the 200-day moving average and a trendline linking various peaks and troughs on the chart from March to December.

A more optimistic scenario could drive a rally to $130. Investors should keep an eye on potential exit points around this level, close to the April peak, which aligns with a cluster of similar prices on the chart between May and July.

Important Levels of Support to Keep an Eye On

In the event of market retracements, it is crucial for investors to pay attention to whether Micron supporters can defend the $97 mark. This particular level, currently just 2% below Monday’s closing price, may find support close to a horizontal line linking various price actions on the chart dating back to early March.

If the stock price breaks below this level, it could signal a potential decline, leading to a revisit of lower support levels around $85. Investors might consider accumulating stocks in this range near the lows from last month, which coincide with significant troughs in August and September.

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Ownership Disclosure

As of the date this article was written, the author does not own any of the above securities.