Money Control Place
  • Politics
  • Business
  • Stocks
  • Investing
  • Politics
  • Business
  • Stocks
  • Investing

Money Control Place

Stocks

Profit From the AI Wave Now: One Stock With Lots of Upside Potential

by December 21, 2023
December 21, 2023
Profit From the AI Wave Now: One Stock With Lots of Upside Potential

Yesterday’s stock market selloff was enough to make investors nervous. When Micron Technology (MU) stock fell over 4 percent before the company announced earnings, many were expecting weak earnings. But Micron beat earnings and revenue expectations, and the stock gapped higher at the open by around 8%. This wiped out yesterday’s losses.

Micron’s stock price hit a 52-week high, although it’s come off since then. The stock reached the most active stocks in the S&P 500. It’s worth looking more closely at this stock, especially since it’s in the semiconductor subsector and trading at around $85, making it more accessible than some of the other stocks in the same subsector.

The Weekly View of Micron Technology

Let’s start by looking at the weekly chart of Micron Technology (see chart below).

CHART 1: WEEKLY CHART OF MICRON TECHNOLOGY STOCK. The stock broke above its upper Bollinger Band, has a high SCTR score, and the RSI is shy of overbought territory. These indicate the stock has upside potential.Chart source: StockChartsACP. For educational purposes.

MU has moved above its upper Bollinger Band®, its StockCharts Technical Rank (SCTR) score is above 90 and its relative strength index (RSI) is just below overbought territory. All three indicators show this stock has potential to move higher, even in an overextended market.

The Daily View of Micron Technology

Let’s move to the daily chart for MU (below).

CHART 2: DAILY CHART OF MICRON TECHNOLOGY STOCK. The stock is trading on strong volume, RSI is inching towards overbought territory, and the stock is underperforming the semiconductor industry. If the momentum continues, this stock could move up much higher.Chart source: StockChartsACP. For educational purposes.

The daily chart shows indications similar to the weekly chart. The stock price has hit a 52-week high, it’s trading above its upper Bollinger Band, volume is above average, the RSI is below overbought territory, and MU is underperforming the VanEck Vectors Semiconductor ETF (unadjusted data) but trending higher.

The Bottom Line

When a stock moves above the upper Bollinger Band, it signifies strength. If you were to enter the trade now, as long as price walks the upper band, you’d stay in the trade. The 20-day simple moving average (dashed red line) can be your first support level. You could also wait for the next pullback before entering the trade.

Fundamentally, between now and the next earnings report, the stock looks positive. Guidance from Micron’s earnings report on Wednesday after the close was strong mainly because as AI becomes more mainstream, demand for memory chips is likely to increase. So, if you missed the boat on some of the Magnificent Seven stocks, MU may present an opportunity to jump in on the AI rally. This stock has room to run.

Disclaimer: This blog is for educational purposes only and should not be construed as financial advice. The ideas and strategies should never be used without first assessing your own personal and financial situation, or without consulting a financial professional.

0
FacebookTwitterGoogle +Pinterest
previous post
The Hoax of Modern Finance – Part 3: Fictions Told to Investors
next post
More from Mish’s Outlook 2024 — S&P 500

Related Posts

Market Stumbles Near The Edge of a CLIFF

June 19, 2024

Uncover the Week’s Key Stock Market Movements

March 22, 2025

Stock Market Dips Below 200-Day Moving Average: Are...

March 12, 2025

Breadth Indicators Illustrate Recent Dire Conditions

October 10, 2023

Why Novo Nordisk’s Stock Price Recovery Makes It...

May 8, 2024

DP Trading Room: Two Industry Groups To Watch!

May 7, 2024

We’re Topping With BEARISH Action Ahead!

February 2, 2025

BEWARE! META, TSLA, AMZN, MSFT & AAPL Report...

January 27, 2025

Is the S&P 500 Flashing a Bearish Divergence?

June 11, 2025

Markets Flip as Earnings Season Heats Up

July 22, 2023

    Get free access to all of the retirement secrets and income strategies from our experts! or Join The Exclusive Subscription Today And Get the Premium Articles Acess for Free


    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    Latest

    • S&P 500 Breaking Out Again: What This Means for Your Portfolio

    • Vince Lanci: Silver’s London Liquidity Crisis — What’s Happening, What’s Next

    • Cardiol Therapeutics Secures US$11 Million Financing and Extends Cash Runway into Q3 2027

    • Top 5 Canadian Mining Stocks This Week: JZR Gold Jumps 113 Percent

    • Tech Weekly: Broadcom and OpenAI Sign Deal, AMD and Oracle Announce Partnership

    • Finlay Minerals Announces Closing of Non-Brokered Private Placement of Flow-Through and Non-Flow-Through Units

    Categories

    • Business (1,400)
    • Investing (3,043)
    • Politics (3,699)
    • Stocks (1,823)
    • Uncategorized (20)
    • About us
    • Contact us
    • Privacy Policy
    • Terms & Conditions

    Disclaimer: MoneyControlPlace.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2025 moneycontrolplace.com | All Rights Reserved