Memory stocks are getting crushed and Micron just dropped another 7%. But here is what the bears are missing. ๐งต
๐ Technical Snapshot:
MU at $940.76, -7% today. RSI at 52.4 โ dead neutral. Price is above SMA10 ($916) and SMA20 ($895) but below SMA50 ($962). MACD is positive at 5.5 with expanding histogram.
๐ The Setup:
Micron is 22.5% off its 3-month high but 34.6% above its 3-month low. This pullback is happening within an established uptrend โ the daily structure is still bullish. The decline in volume (0.7x ratio) tells me this is profit-taking, not panic.
HBM (High Bandwidth Memory) demand for AI is not going away. Every new AI chip needs more memory, not less. This pullback could be a gift if $895 support holds.
๐ Key Levels:
โข Support: $895 (SMA20) โ $823 (structural)
โข Resistance: $962 (SMA50) โ $1,088 (breakout level)
โข Watch: If RSI drops below 40, the setup weakens significantly
โก The Verdict:
Buy zone is $895-$920 IF volume confirms a bounce. Do not catch the knife at $940 on the way down โ wait for the higher low.
๐ฌ Are you buying this memory dip or waiting for lower prices? ๐
#Stocks #MU #Semiconductors #DYOR
โ ๏ธ Disclaimer: Not financial advice. Stock markets carry risk. Do your own research.