Shares of Micron Technology ($MU) moved lower in pre-market trading after Goldman Sachs downgraded its rating on the chipmaker to Neutral from Buy.
After building some more cause, Micron broke higher out of the range today. The $0.50x1 P&F shows a short term target of $31.50 and the $0.50x3 P&F shows a longer target to $36. The other possibility is that this is merely an upthrust and it will return into the range but probably not; it looks like a continuation of the healthy uptrend from here. Wishing I would have been watching it more closely. Might chase it; we'll see in the morning.
The competition has far to go to catch up and given the high chips prices this one should keep going up for the next 6-8 months! Very safe to be in this one for at least two more ER's!
$1.60 EPS for 3Q and guidance of $1.90-2.00 for 4Q would put us somewhere between $35-$37/share post earnings.
Opened some options on the 35 weekly call. The plan is to sell covered call before the ER. Expecting the stock to move closer to 34 before the ER announcement.
Micron Technology, Inc. (MU): Barclays Expects May Ahead on Continued Pricing Improvements Barclays looks for August revenue ahead of the Street at $5.6B and closer to its $5.77B (3% Q/Q) as positive memory trends persist through the 2H
Pretty decent EPS beat and great guidance for Q4 yet this thing is trading flat around the close price...
@Ken34 said this in the weekly thread on the main board. Maybe it has to do with your observation. Just figured I'd share it in this thread.
The semiconductor maker's strong demand will likely persist in quarters ahead, assisted by increasing ASPs.
Broke below my longish term support line and 50MA today. Hopefully for those MU bulls on this forum it rebounds on Wednesday.
As much as I like MU, i am not too sure about if it can hold this trend. The semi sector still show great weakness. Selling covered calls or selling call spread is probably a safer play for the time being.
Not buying the conspiracy theories. Fake news might be hurting SP, but yesterday showed that people are realizing the truth. $35 coming up.
I invested post ER with price target 35 and I feel that's easily achievable, I am ok with waiting but I think I need not to ...
