Micron is a well-known American producer of computer memory, data storage devices, flash memory, and USB flash drives. DRAM products make up most of the company’s revenues. The demand for DRAM and NAND is set to go beyond computers and mobile phones with the advent of cloud and IoT. Additionally, there has been some consolidation lately in the sector. Such developments will favor scale players like Micron and aid future growth.
The long-term monthly chart for Micron shows a 4-year uptrend with periodically higher lows. The price reached highs of over $60 in January and February of 2020 before falling significantly by close to 50% in March 2020. During this downfall, the price briefly went below an important support resistance zone around $38.
However, starting April 2020, the price has bounced back from the bottom of the long-term trend as well as the historical $38 resistance zone gained more than 50% from its March low. There is no visible resistance until $56-$60 levels and the stock is poised to rise. Stop loss can be placed below the lower trend line around $40.
Positions taken today at $48.63 with a cautious stop loss -37.54% below at $30.37. Short term profits could be taken at the top of the range at $82 giving a profit of over 68%
On the video and images above you will see the reason this stock was selected.
You will see the image is of a monthly chart of the stock showing the long-term upwards trend formed over the years. You will also see the entry point and the where the stop loss is placed. For more information please watch the video given.
Once it is time to move the original stop loss up you will see an additional image.