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Micron Upgraded to Outperform

Shares of Micron Technology, are changing hands at 55.48 in early trading up 2.76% as RBC started coverage of the stock with an outperform rating. Analysts placed an $80 price target on the shares.

“While we don’t think cycles are done, we do think they are inherently more muted and MU is positioned to generate positive EPS and FCF under most down-cycle scenarios,” – RBC

RBC points to a sharp reduction in the number of competitors and “sensible pricing environment.” This is compounded by the cost of manufacturing of DRAM and NAND becoming more expensive.

“As capital intensity has increased, the risk of oversupply has materially diminished,”

Micron shares are up more than 86% in the past 12 months, while the PHLX Semiconductor Index has risen 25%.

Micron Technology Technicals

Technically speaking the stock broke above Kumo yesterday, while the markets consolidated recent gains. This “Kumo Breakout” signals potential further gains as resistance now becomes support. Chikou (green line) is above price action, which is bullish. For more on Ichimoku, check out this video.

MU Ichimoku Upgrade RBC


Momentum oscillators indicate bulls are in control. The stock’s short percent is 5.23%.

Micron Position and New Entries

The 60minute shows support along its rising moving average(s). Any intraday pullback would be viewed as an opportunity if we see an ABCD pattern develop. Use the ToD Setup to start the day.


Micron RBC upgrade


We will watch the stock this morning for an opportunity to add to our position. We won’t chase it as short-term traders will most likely take profits first thing after the Opening Bell.

We will be LIVE at 9:20 AM.

Happy Trading,


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Investment Warnings

We would like to draw your attention to the following important investment warnings. The value of shares and investments and the income derived from them can go down as well as up; Investors may not get back the amount they invested – losing one’s shirt is a real risk; past performance is not a guide to future performance.