We heard a rumor that at least two to three large chip companies approached Micron about a takeover.
Is the rumor true, we are trying to find out.
We can say this, after looking at the stocks / P/E's of lesser public companies, in the computer / technology industries and other industries, and then looking at the price of Micron, if the company is not purchased ...
As discussed earlier indicators showed breaks up a week ago . now we will reach 1st target at 40.5 then 41.3 then 44 then final one at 47-50 green color but expected to hold above 38 again to confirm the new uptrend. short support will be last week closing at 38.5 up to 37.9. for more please check previous analysis
Summery long positions at area between 35-36 .. targets 40-44-50
RSI and MFI indicators showing positive movements
But Slow stochastic showing down trend or more volatility
candles pattern also positive bullish short term trend
Confirmation of uptrend after closing above 40 for at least 3 days
Stop loss if breaks 34 with high volume
Hard sale pressure on MU, -45% form May. Not bad earning report, not bad fundamental ratios, but have problems in margin and price of memory components using for develop product. Next year can be more hard if company cant find out how to make money based on technology and supply price which they use now.
Positive moments for most indicators . breakup RSI with good volumes indicate we reached bottom levels
Good support at 35.5 and 34 shall be stoploss for this new trend.
44 is main resistance and the target is 50s
We have weak support in the mid 30's but it does not look like it is going to hold. I believe this 10 billion dollar company stock buy back is propping this one up. An my bet is the selling will intensify with the recent politicized rhetoric. Will look for a long entry in the 20's. While we wait, short it if you got the stones.