Micron Announces Layoffs for 2023; Sales Could Dive 50%

Semiconductor company Micron Technology (MU) just announced it will cut 10% of its workforce in 2023 as it braces for revenue to drop more than 50%. Micron's revenue is not the only thing at risk of dropping next year though -- its stock price could be starting what may ultimately end up being a years-long descent.

The above yearly chart (also reproduced below) shows that Micron's price was rejected at a major resistance level.


The Stochastic RSI shows that yearly momentum is beginning to roll over from overextended levels. This is quite bearish looking.


The combination of Micron's price being rejected from a major resistance level and momentum rolling over on the yearly chart could signify that Micron is entering a period of prolonged decline.

This trend, however, is not unique to Micron. In one of my prior posts, I explain that the entire S&P 500 is at risk of further decline. (See below post for more details)


Yet, not all hope is lost. On the quarterly timeframe, Micron's price is potentially forming bullish reversal candles at the mean of its regression channel.

For those who are unfamiliar with a regression channel, it simply indicates how far above or below the mean (or average) price an asset's current price is trading. In the regression channel above, the red line is the mean price, the upper channel line is 2 standard deviations above the mean, and the lower channel line is 2 standard deviations below the mean. Unlike trendlines, price can rise above or fall below the regression channel lines and not invalidate them.

If Micron's price can find support and reverse at the mean, perhaps the long-term upward trend will continue.

Of note, Micron's price is also generally quite correlated with that of Bitcoin, as shown below.


What might Micron's nosediving revenue prediction mean for Bitcoin?