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Technical analysis

Micron Technology - Chart Analysis - Week Ahead 7 November 2022

Check out the trading idea of the week below, by your friendly, neighbourhood market analyst!

Trading Idea of the Week

NYSE:MU - Micron Technology Inc - BULLISH BIAS

  • Key levels on the chart - consider taking trades from key support/resistance zones.
  • Micron has faced some difficulties over the past few quarters. In what can be described as an imperfect storm for the RAM and data storage chip provider, the company’s revenues, gross margin and profit margin all declined as the company continued to face rising operating expenses.
  • EPS has come off significantly, with the company only posting earnings per share of $1.35, far less than the $2.34 it posted in the previous quarter or the $2.39 it posted in the same quarter last year.
  • To address some of these factors, the company made significant reductions to the capital expenditure, expected to come down 30% to around US$8 Billion. These reductions are set to negatively impact the current year's costs but are expected to improve their economic condition in due time, as it’ll bring supply and inventory closer to where the industry demand is.
  • While Micron’s end consumers in both a commercial and retail sense are finding it tough, with consumer PC demand and commercial data centre demand dropping due to supply constraints, improving supply conditions will help improve Micron’s position.


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