Shares of Micron Technology Inc (NASDAQ:) are ramping today. Positive comments from Deutsche Bank (DE:) (Micron was raised to buy from hold with a $60 price target at Deutsche Bank. Shares closed up 1.6% at $50.68 on Monday, with a $63.12 consensus price target.) have provided the spark.
Micron’s breakout move is driving the stock past heavy resistance near the $52.00 area (August/September highs). With solid support underneath the stock is set up well for a fresh rally leg. A close this week above last month’s high ($52.20) would be strong signal. On the downside a close back below $50.00 would violate this week’s low sending a clear warning sign that more range bound action is ahead. We consider MU a fairly low risk buy at current levels.
Note: We are long MU in some managed accounts.
You can read Gary S. Morrow’s original post here.
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