MU Formed double bottom expected to hit 130MU Formed double bottom expected to hit 130.. it's a W pattern
MU trade ideas
What You Need to Know Ahead of Micron Technology Earnings ReportMicron Technology Inc. (NASDAQ: NASDAQ:MU ) is set to release its fiscal fourth-quarter earnings report after market close today, Wednesday, September 25, 2024. Investors are eagerly anticipating this report, as it could provide crucial insights into the state of the memory chip industry and the broader tech sector.
Key Takeaways:
- Analysts expect Micron (NASDAQ: NASDAQ:MU ) to swing to a profit this quarter, with year-over-year revenue expected to almost double.
- Key metrics to watch include inventory levels and guidance for the next quarter.
- Micron's relationship with Nvidia ( NASDAQ:NVDA ) and its role in the AI hardware space is expected to be a central focus.
Earnings Expectations:
For Q4 2024, analysts are forecasting revenue of $7.65 billion, a substantial jump from the $4.01 billion reported in Q4 2023. This rise is largely driven by the growth of Micron’s memory chips used in AI data centers and high-performance computing systems. Earnings per share (EPS) are expected to come in at 84 cents, a significant improvement from last year’s loss of $1.31 per share.
1. Revenue Growth:
Micron (NASDAQ: NASDAQ:MU ) is expected to post significant year-over-year revenue growth, fueled by strong demand for AI-related memory chips. The company's partnership with Nvidia has been a key driver in this sector, as high-bandwidth memory (HBM) used in AI data centers continues to see robust demand. Analysts believe Micron’s growth trajectory will be further accelerated by the ongoing AI boom.
2. Profitability:
After reporting losses last year, Micron (NASDAQ: NASDAQ:MU ) is anticipated to return to profitability with net income of $1 billion for the quarter. This marks a major turnaround, thanks to increased demand for high-performance memory and storage solutions used in AI, edge computing, and data centers.
3. Inventory Levels:
One key area to watch will be Micron’s inventory levels. The company has been dealing with growing inventories as demand for legacy memory chips has waned. Both Citi and Morgan Stanley recently lowered their price targets for Micron (NASDAQ: NASDAQ:MU ) due to concerns about high inventories and weak demand for older memory components. However, analysts expect inventory issues to ease by the end of the year, with improvements in gross margins and revenue in the coming quarters.
Business Outlook:
Looking ahead, analysts are optimistic about Micron’s potential growth. The AI-driven upgrade cycle is expected to drive demand for edge devices and data center memory solutions, while a possible server refresh could also provide tailwinds. Analysts estimate that Micron (NASDAQ: NASDAQ:MU ) will generate $8.4 billion in revenue in the first quarter of fiscal 2025, with EPS expected to rise to $1.45.
Market Sentiment:
Despite these positive views, some caution remains in the market. While Micron’s stock has gained about 10% year-to-date, it has also faced volatility, especially in the wake of mixed earnings reports from its competitors, such as Broadcom and Nvidia. This has led to reduced enthusiasm for the AI trade, though a positive earnings report today could reignite investor interest in AI-related semiconductor stocks.
Technical Analysis:
From a technical standpoint, Micron Technology stock (NASDAQ: NASDAQ:MU ) is showing signs of bullish momentum. As of today, the stock is up 1.50%, rebounding from a presumed downtrend. It is trading within a falling wedge pattern on the daily chart, a bullish reversal indicator. If Micron Technology stock (NASDAQ: NASDAQ:MU ) delivers a positive earnings surprise, the stock could break through the upper boundary of this pattern, leading to a potential rally toward its 200-day moving average around $105 and possibly higher toward the $130 resistance pivot.
Key Technical Indicators:
- Relative Strength Index (RSI): Currently sitting at 52.00, the RSI indicates a neutral stance, but given the earnings catalyst, the stock is poised for a potential breakout.
- Support Levels: The stock has solid support around $86. A drop below this level could signal further downside risk.
- Resistance Levels: Overhead resistance is found near $100, with the 200-day moving average acting as the next significant level to break around $105.
Investor Sentiment:
Investor sentiment in the options market has grown increasingly bullish in recent weeks. Call options far outweigh put options, with large positions held at the $95, $100, and $155 strike prices, expiring shortly after the earnings report. This suggests that traders are betting on a positive earnings outcome that could propel the stock higher.
Conclusion:
Micron’s earnings report later today is shaping up to be a pivotal moment for the company and its investors. Strong results driven by demand for AI-related memory chips could not only send the stock higher but also restore broader enthusiasm for the AI trade, which has faltered in recent months. However, traders will need to keep a close eye on inventory levels, management’s guidance, and market sentiment to assess the stock's future direction.
In short, Micron Technology stock (NASDAQ: NASDAQ:MU ) may stand at the cusp of becoming one of the biggest bargains in the semiconductor space, with upside potential fueled by AI and data center demand, but tempered by near-term concerns over inventories and legacy products.
MU , looks ready to breakout Since 20% of all AI spend goes to memory and given the past earnings were all beat top and bottom line, and stock is already beaten too much, I expect no matter what the earnings are stock will go up
Micron Stock 1W Spot IdeaRefer by 1W , MU got create new ATH ( 157.14 ) and retrace at bottom support ( 86 )
Price react area bottom support and rebounce again till 11% in a few weeks. We can look that was critical area and 0.5 fibonacci area.
DYORR !!!
Micron Looking Good Into EarningsMicron Looking Good Into Earnings.
Downtrend break, clear support at the $87 level. Up sloping MACD. Earnings Thursday,
Micron – Ready for Breakout After Earnings?Micron ( NASDAQ:MU ) is handling the potential double bottom formation well, with a key breakout level approaching at $109. I wouldn’t jump in until it crosses this level, as I want to see the stock approaching its 150-day moving average, currently around $112.19. Once we see that breakout, I’d expect a solid trade with a target around $136.50. While I’m not in Micron for the long term yet, I believe this setup could make for a strong short-term trade.
Technicals are lining up: RSI is bouncing back from oversold, volume is increasing, and a bullish engulfing candle just appeared. All signs point toward an upcoming breakout, but it will be key to see if the earnings report can provide the final push.
Earnings Expectations:
Revenue and Earnings Beat: For the stock to break out, Micron needs to deliver a revenue beat of 2% or more . This would signal they are navigating the current semiconductor environment effectively.
Raised Guidance: Investors will want to see next-quarter guidance raised by at least 3% , especially in AI, cloud, and memory demand sectors.
Inventory Management: The market will look for signs of reduced inventory and stable or improving pricing for DRAM and NAND chips.
AI Partnerships: New developments or partnerships in AI could serve as another catalyst for growth.
The market is waiting for a clear sign of recovery. A beat on earnings and a strong forward outlook could be just the push Micron needs to break through the $109 resistance and begin a new uptrend.
What do you think? Will Micron’s earnings be the catalyst we’ve been waiting for, or is the stock still too risky at these levels?
MU - Back above $100 soon?MU has been basing in the $80-90 range all month. This coincides with support from early in the year. Above $91.05 which puts it above the 300 day SMA. If fit holds this level, I believe this can make a strong move back above $100. 1st target is $98, a hold there and the 2nd target is $109.
Micron will have a bomb response on earnings!Micron is sitting at a key point in its weekly, monthly, yearly charts. If the news is positive, it will generate multi-year support and will shoot above $100-120, if it breaks, it will go down eventually to 60s.
Micron Technology, Macro Move UPMicron Technology, Inc. is an American producer of computer memory and computer data storage including dynamic random-access memory, flash memory, and USB flash drives. It is headquartered in Boise, Idaho. Its consumer products, including the Ballistix line of memory modules, are marketed under the Crucial brand.
Has been following closely to market, monetary policy and bullsIt seems like as long as it doesn't trigger the stop, and as long as it doesn't fall below the box that's shaded, then a reversal is imminent.
Micron Technology (MU) – Potential Double Bottom FormingI'm seeing the early stages of a double bottom pattern forming in Micron's ( NASDAQ:MU ) price action.
While the stock remains under the 150-day SMA at $112 , a breakout above the $90 neckline could signal a reversal with an upside target around $140—a potential 55% gain.
This setup is still far from confirmed and represents a high-risk trade , but it could be a significant turnaround for Micron.
A key factor to watch is Micron's earnings report next week, which could provide the momentum needed for a breakout. Micron has consistently beaten expectations and raised its outlook, so the upcoming earnings might be the catalyst for a major price jump.
What are your thoughts on this potential turnaround? Do you see Micron's earnings fueling a breakout?
Disclaimer : This idea is for informational purposes only and is not financial advice. I am not a professional, and you should do your own research or consult with a licensed professional before making any investment decisions.
MU: This could reverse the trend! (D&W charts)Daily Chart (Left):
Double Bottom Formation: The price has formed a double bottom pattern near the $85 level, which often signifies a potential reversal point. This suggests that there might be bullish pressure accumulating at this support zone.
Gap: There is a clear gap in the price action from July, which could potentially act as resistance. Gaps often get filled, meaning that price might gravitate towards the gap zone in the mid-term.
Resistance Area: The price is approaching a critical resistance area around $91.47, which aligns with the 21-day EMA. This level needs to be cleared for any significant bullish momentum to continue.
21-day EMA: The stock has been trading below the 21-day EMA, and this has acted as a dynamic resistance. A clear break above this level could signal a stronger bullish move.
Weekly Chart (Right):
Hammer Pattern: On the weekly chart, a hammer pattern has formed at the $84.91 level, which is a bullish reversal candlestick pattern, often seen at the bottom of a downtrend. This suggests the possibility of a bounce from this level, reinforcing the significance of the support zone.
Key Resistance Zones: The $91.47 level is also important on the weekly chart, as breaking above it would confirm the bullish reversal indicated by the hammer pattern. The next target would be the $111 level, where the price encountered resistance earlier.
Conclusion:
In the short term, $91.47 is the key resistance area to watch. A successful breakout above this level could lead to a bullish move towards the $111 level. However, failure to break above this resistance may result in consolidation or a potential retest of the $85 support level. The hammer pattern on the weekly chart adds weight to a possible bullish reversal, but confirmation is needed with a move above $91.47.
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Remember, real trading is reactive, not predictive, so let's stay focused on the key points described above and only trade when there is confirmation.
“To anticipate the market is to gamble. To be patient and react only when the market gives the signal is to speculate.” — Jesse Lauriston Livermore
All the best,
Nathan.
MU: Micron Inc death crossThe purpose is to analyze DEATH CROSS impact on MU day chart. It is remarkable that this time a death cross print is almost simultaneously by both 50&200 EMA and 50&200 SMA with a lag of just one day. As a rule, I look for a death cross whichever moving average pair print it earlier, as the other pair would be typically too late to the show (it can be 'either or' depending on magnitude of most recent price actions for EMA pair).
This time both pairs print it simultaneously and I would argue that this time both are REMARKABLY late! As a matter of proof, I analyzed RELATIVE slope of MU bear markets that with a death cross, versus percentage the price had yet to retreat since the death cross print day until bottomed.
There were approximately few of them (scroll back the chart to certain periods indicated below).
November’14 – February’16 ~65%
May’18 – December’18 ~32%
April’21 – October’21 ~12%
January’22 – September’22 ~30%
And current June’24 – September’24 ???
On the right hand side of the chart, relative slopes of each bear market trendline are given. Looking at a relative steepness and rapidness of the June – September decline comparing to past periods, I would consider that this time both pairs of moving averages are lagging way behind and the death cross is too late to the show to indicate any extra percentage of price decline. i.e. the stock has bottomed and is already in upswing.
MU - 1W - Double BottomWhile semiconductor giants like ARM and NVDA have surged over 100% YTD, Micron has significantly underperformed, rising only 8% this year and dropping more than 45% in the past three months.
However, a potential reversal may be on the horizon as a double bottom pattern forms around $83/share, accompanied by a strong bullish RSI divergence and price rebounding off the point of control (POC).
This combination signals a possible shift in momentum.
The Trend Line and the Key Level MU 3DIt seems that MU may have pulled back to a key level that acted as resistance that was broken through, now will this key area act as support? Or will it fall further and test the trendline? One thing to note is that the CM Williams Vix Fix is flashing green saying a possible bottom is in?
The Trend Line and the Key Level MU 3DIt seems that MU may have pulled back to a key level that acted as resistance that was broken through, now will this key area act as support? Or will it fall further and test the trendline? One thing to note is that the CM Williams Vix Fix is flashing green saying a possible bottom is in?
Price at monthly supportThe price just landed on a strong support zone. I just opened a long position. SL triggers if a weekly candles breaks down the support zone and closes below it.
$MU - Looks attractiveNASDAQ:MU Micron is looking attractive. The ideal entry point would be in the $81 gap fill area. Not sure if it will get there, though, as the MACD is starting to turn.
As always, I share my opinions and trades. I'm not suggesting anyone follow my trades. You do you.
$MU Micron, ready for a big move?Is NASDAQ:MU Micron is getting ready for a huge move? Double bottom price target $137. Falling wedge price target $170.
Micron, getting ready to explode?Is Micron is getting ready for a big move? Double bottom price target $137. Falling wedge price target $170
MU - Micron TechnologyReuters
Micron
CEO Sanjay Mehrotra said last year that the U.S. memory chip maker's planned $2.7 billion testing and packaging unit in Gujarat would help create about 5,000 jobs in the state.
Double Bottom Is Forming on MicronMicron is in an interesting position after shedding a great amount of value in the last 3 months. The Fundamentals are great and Microns Balance Sheet has very few problems! with the double bottom forming this could be signaling a very bullish sentiment with a possible reversal towards the upside. Micron is currently being forecasted with Revenue and EPS Growth.
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Balance Sheet: Micron has a decent Debt to Equity Ratio while having more then 3 Assets for every 1 Liability which is personally important to me when looking at stocks, Debt is Manageable especially should Micron beat all forcasts
Cash: US$8.38b
Debt: US$11.33b
Total Liability: US$22.03b
Total Assets: US$66.26b
Debt to Equity Ratio is: 25.6%
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Resumed its Share Buy-Back Program
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Highly Important Industry Supplier and Affiliates: Being Extremely Important with Industry Titans like Nvidia, Apple, Intel, MPS/Monolithic Power Systems, AMD, Texas Instruments, Microsoft, Gigabyte, Broadcom.
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Diversified Business Model: Micron is not just a memory business its highly Diversified in
23.46% of there Revenue is derived from Microns -> "Mobile Business Unit"
23.4% of there Revenue is derived from microns -> "Embedded Business Unit"
36.74% of there Revenue is derived from Microns -> "Networking and Business Unit"
16.43% of there Revenue is derived from Microns -> "Storage Unit Business"
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While Micron is in another uptrend in Revenue growth I think personally this time it could be more permanent growth, Micron is Extremely Undervalued compared to market peers such as Nvidia, and Micron with PE Ratios being well above 50 while Micron is extremely important within the Artificial Intelligence industry it benefits from a wide range of industries such as Artificial intelligence, Automotive, Computers, Memory, ETC.
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Disclaimer: I am not a financial expert or have any certifications I just trade stocks as a personal hobby and I greatly encourage you to do your own research and not just take words at face value to make extremely risky investments. Please do your own Research I am not giving Buy, Sell or Hold Signals, This is just for healthy conversation and nothing else.
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Idea:
