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(Photo Illustration by Pavlo Gonchar)
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Micron Technologies (MU) beat earnings-per-share estimates after the market closed on December 20. This was the semiconductor’s eighth consecutive better-then-expected earnings report. The stock closed December 20 at $82.03 then popped to as high as $98.45 on January 5.
The stock has been extremely volatile. From the January 5 high at $98.45, Micron crashed to as low as $75.52 on January 28, then rebounded to as high as $96.50 on February 15. Shares of Micron are now trading around its quarterly pivot at $89.82.
Following its December 20 earnings report, Micron cited strong year-over-year revenue growth. The company expects its fiscal 2022 to deliver solid profitability. Their latest DRAM semiconductors are available across their major markets.
The stock has a p/e ratio of 12.21% and offers a dividend of 0.46%. This is reasonable statistics given the fact that the company has beaten earnings-per-share estimates in eight consecutive quarters.
The Daily Chart for Micron
Daily Chart for Micron
Courtesy of Refinitiv Xenith.
The daily chart for Micron shows a bear market decline of 32% from its high of $96.96 set on April 12, 2021, to its October 12, 2021 low of $65.67. This was followed by a favorable market rise of 50% to its January 5, 2022 high of $98.45.
This creates a trading range between the October 12 low of $65.67 and the January 5 high of $98.45. Note the strength of the annual pivot at $80.29 and the 200-day simple moving average at $79.67. This is where to buy on weakness.
The horizontal lines from top to bottom are the quarterly pivot at $89.82, the annual pivot at $80.29, the monthly pivot at $75.42 and the semiannual value level at $71.95.
The Weekly Chart for Micron
Weekly Chart for Micron
Courtesy of Refinitiv Xenith.
The weekly chart for Micron is positive with the stock above its five-week modified moving average at $87.46. The stock is well above its 200-week simple moving average or reversion to the mean at $57.67. The 12x3x3 weekly slow stochastic reading is rising at 55.87.
Trading Strategy: Buy Micron on weakness to its annual pivot at $80.29 and 200-day simple moving average at $79.67. Reduce holdings on strength to the January 5 high of $98.45.
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