Micron Technology, Inc. (MU) suffered through a long decline last year. Has the new calendar year brought the bulls back? Let's check out the charts and indicators again.
In the daily bar chart of MU, below, we can see the price slide from late May to late December that took MU from around $65 to briefly below $30. Prices have improved modestly from the end of 2018, part of a larger trend just noted by Jim Cramer that has seen semiconductor stocks make a surprise comeback in 2019. MU is trading above the rising 50-day moving average line and just below the bottoming 200-day moving average line.
The volume histogram, right below the price chart, is hard to interpret, but the daily On-Balance-Volume (OBV) line is clear and shows a decline from June to the end of the year. The OBV line has improved modestly this year, but it is a long way from its best levels. The Moving Average Convergence Divergence (MACD) oscillator gave a cover-shorts buy signal in early January and an outright-buy signal later in the month.
In the weekly bar chart of MU, below, we can see that prices made an impressive advance from 2016 to 2018. Prices corrected down to a 2017 support area and broke other support zones on the way down. MU is now just below the declining/flattening 40-week moving average line.
The weekly OBV line shows a decline last year and only a modest improvement this year. The weekly MACD oscillator crossed to a cover-shorts buy signal in January and is far away from crossing the zero line.
In this Point and Figure chart of MU, below, we can see an upside price projection in the $54 area.
Bottom-line strategy: The charts and indicators of MU are pointed up with a possible $54 price target. Traders can trade MU from the long side risking a close below $40.