UBS Upgrades Micron (MU): Cycles Point to Higher Prices Into Summer

Steve Miller
micron mu stock price analysis higher targets strength february 13 2020

Micron NASDAQ: MU Weekly Chart Grid

On Wednesday, UBS analyst Timothy Arcuri upgraded Micron’s stock (MU) from neutral to buy.

He also raised his price target from $47 to $75.

The analyst cited a DRAM upswing, which should last deep into 2021. Micron derives approximately 60% of its revenue from DRAM.

UBS believes that Micron deserves to trade at a higher multiple given the company’s competitive positioning and through-cycle financial performance. Let’s see what the charts tell us.

At askSlim.com 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.

micron stock technical indicators analysis bullish semiconductors prices february 13

askSlim Technical Briefing

The weekly cycle analysis suggests that Micron is in a very positive intermediate-term pattern. Weekly momentum is positive. 

On the upside, there is an intermediate-term Fibonacci projection/target zone from 65.28 – 68.71. On the downside, there is a rising intermediate-term Fibonacci support at 56.46 followed by another zone of support from 53.65 – 49.10. For the bears to regain control of the intermediate-term, we would likely need to see a weekly close below cycle low support at 44.55


askSlim Sum of the Evidence

Micron is in a very bullish weekly cycle pattern with positive weekly momentum. Given these conditions, we would expect sell-offs to be contained to the rising intermediate-term Fibonacci supports beginning at 56.46 until the next intermediate-term low forms.

The next projected intermediate-term low is due between the end of April and the end of May. Once the next intermediate-term low forms, there is a likelihood the stock tests 65 by July.

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