Micron Technology (MU) Shares Surge by Approximately 15%

The US stock market is experiencing positive momentum following the much-anticipated decision by the Federal Reserve to cut interest rates this month. The S&P 500 (US SPX 500 mini on FXOpen) closed at a new all-time high, driven by yesterday's news of:
→ Steady US GDP growth at 3% annually
→ Low unemployment, with 218K jobless claims filed last week (forecast = 224K, previous = 222K).

One of the top performers on the stock market yesterday was memory chip maker Micron Technology (MU). As seen on the MU stock chart, yesterday's candle closed around the $110 level, up from below $95 at the start of the week.

The strong bullish momentum was driven by Micron Technology's quarterly earnings report. According to Barron’s:
→ Earnings per share reached $1.18 for the fourth fiscal quarter, beating analysts’ forecasts of $1.11;
→ Revenue grew by 93% year-on-year to $7.75 billion;
→ Micron Technologies expects revenue next quarter to be $8.7 billion, surpassing forecasts of $8.3 billion and significantly more than $4.73 billion for the same period last year;
→ Micron Technologies' CEO Sanjay Mehrotra stated that demand for AI "drove a strong ramp of our data-center DRAM products and our industry-leading high-bandwidth memory."

Technical analysis of the MU stock chart shows that the price is moving within an upward channel (marked in blue). Key points include:
→ In early September, a Rounding Bottom pattern formed near the lower boundary of the channel – a bullish sign;
→ In yesterday's broad bullish gap, the price exceeded the key $109 level, which previously acted as both support and resistance (indicated by arrows).

Bearish Outlook for MU Shares: Supply forces may emerge around the $109 level, forming a false bullish breakout, with the possibility of testing the psychological level of $100.

Bullish Outlook for MU Shares: Strong company fundamentals and a bullish stock market could drive MU shares towards the median of the upward channel.

According to TipRanks, Wall Street analysts forecast an average target price for MU shares of around $150 over the next 12 months.

Buy and sell stocks of the world's biggest publicly-listed companies with CFDs on FXOpen’s trading platform. Open your FXOpen account now or learn more about trading share CFDs with FXOpen.

This article represents the opinion of the Companies operating under the FXOpen brand only. It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.