Buy Micron Tech Shares, Analyst Tells Investors

Micron has gone nowhere since June 2022. Over that time, it has logged four separate trough-to-peak rallies of at least 20%, all of which failed to overtake the $65-zone.

Photo Insert: Micron’s current advance commenced from a “higher low” near $56, which means that the stock hasn’t needed to rally as much to get back to its formidable resistance zone this time.

The stock is now close to challenging that level again after another strong gain of about 15% from its recent low, Frank Cappelleri wrote for Barron’s Daily.

Micron’s current advance commenced from a “higher low” near $56, which means that the stock hasn’t needed to rally as much to get back to its formidable resistance zone this time.

That’s important. Oftentimes, a stock appears ready to push through resistance, but it has already rallied a great deal. That decreases the chances of a successful breakout, as was the case during the stock’s previous breakout attempts.

While a 15% gain isn’t negligible, it is the smallest multiweek advance of the five since the 2022 lows.

Because Micron has come less far, the stock won’t be as stretched when it attempts to break out again. All that back-and-forth movement has produced a very big potential base, known as an inverse Head & Shoulders pattern in technical parlance.

And when such a chart formation develops after a big downturn like the one Micron just endured, it’s called a “reversal pattern.” A convincing move above $65 would complete the formation.

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