Micron (MU) Stock Trading Outlook Dims With Goldman Sachs Downgrade

Steve Miller

This morning, Goldman Sachs downgraded Micron (MU) from Buy to Neutral and cut their price target from $60 to $49.

The analyst believed that the company’s current valuation fully reflects Micron’s growth prospects.

Micron was down about 1% on the trading day.

Given this background, let’s take a look at the stock chart.

Micron Technology (MU) Weekly Chart

micron stock price cycle analysis outlook bearish top goldman sachs downgrade april 2020

At askSlim we use technical analysis to evaluate price charts of stocks, futures, and ETF’s. We use a combination of cycle, trend and momentum chart studies, on multiple timeframes, to present a “sum of the evidence” directional outlook in time and price.

askSlim Technical Briefing:

micron technology stock price technical indicators mu reversing bearish goldman sachs downgrade april 2020

The weekly cycle analysis suggests that MU has a negative weekly cycle pattern and is forming a bear flag. Weekly momentum is negative. The next projected intermediate-term low is due between early-to-mid June.

On the upside, there is an intermediate-term resistance zone from 46.16 – 49.71. On the downside, there is a Fibonacci extension zone from 34.78 – 31.23. Our analysis suggests that for the bulls to regain control of the intermediate-term, we would need to see a close above 54.76.
askSlim Sum of the Evidence: 

MU is in a negative weekly cycle pattern with negative momentum. Given these conditions, we would expect any upside to be limited to the intermediate-term resistance zone beginning at 46.16. We would expect this rally to fail at resistance and get more selling pressure down to the Fibonacci extension zone beginning at 34.78 by June.

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Any opinions expressed herein are solely those of the author, and do not in any way represent the views or opinions of any other person or entity.