Micron Signal 22/12: Will The Rally Continue (Chart)

(MENAFN- Daily Forex) Long Trade Idea

Enter your long position between $256.53 (the open of its last bearish candlestick) and $268.38 (Friday's intra-day high).Market Index Analysis

• Micron Technology (MU) is a member of the NASDAQ 100 and the S&P 500.
• Both indices trade inside bearish chart formations.
• The Bull Bear Power Indicator of the NASDAQ 100 turned bullish with a descending trendline.

Top Forex Brokers1 Get Started 74% of retail CFD accounts lose money Market Sentiment Analysis

Equity futures hint at a positive open after closing Friday's session in the green, a high-volume quadruple witching day, and the final full week of trading for 2025. Equity markets are approximately 3% below all-time highs, and investors hope for a Santa Claus rally in a low-volume trading week. Tomorrow's consumer confidence reading could provide a volatility boost, as it could deliver more evidence of a K-shaped economic trajectory. Overall, it should be a quiet week, where existing trends and worries remain front and center Technology Fundamental Analysis

Micron Technology manufactures computer memory and computer data storage, including dynamic random-access memory (DRAM), flash memory, and solid-state drives (SSDs), which are essential for data centers and AI applications.

So, why am I bullish on MU following its earnings report?

Micron Technology reported $13.64 billion in revenue and earnings per share of $4.78, easily eclipsing expectations of $12.84 billion and $3.95, respectively. I remain bullish on MU, as its forecasts call for adjusted second-quarter earnings per share of $8.42, which would blow past analysts' expectations of $4.78, while valuations are among the lowest in the AI sector. Supply constraints amid surging demand provide a tailwind, and profit margins are expanding.

Micron Technology Fundamental Analysis Snapshot

The price-to-earning (P/E) ratio of 25.25 makes MU an inexpensive stock. By comparison, the P/E ratio for the NASDAQ 100 is 34.33.

The average analyst price target for MU is $299.22. It suggests good upside potential with manageable downside risks Technology Technical Analysis

Today's MU Signal

Micron Technology Price Chart

• The MU D1 chart shows price action inside a bullish price channel.
• It also shows price action challenging the ascending 0.0% Fibonacci Retracement Fan level for a potential breakout.
• The Bull Bear Power Indicator is bullish with an ascending support line.
• The average bullish trading volumes remain elevated.
• MU advanced with more than the NASDAQ 100 Index, a significant bullish trading confirmation.

My Call on Micron Technology

I am taking a long position in MU between $256.53 and $268.38. I am bullish on MU amid its second-quarter outlook, low valuations, supply-and-demand conditions that favor pricing power and expanding margins. It remains one of my preferred AI plays.

• MU Entry Level: Between $256.53 and $268.38
• MU Take Profit: Between $335.13 and $345.18
• MU Stop Loss: Between $226.69 and $237.45
• Risk/Reward Ratio: 2.63

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