Micron Technology (MU) Analysis
· Micron Technology is one of the dominant computer memory chip companies in the world.
· Chip memory stocks had parabolic runs due to strong demand caused by the AI infrastructure build.
· Usually, parabolic runs are followed by sharp reversals, rather than sideways corrections.
· This is what we are seeing in MU price pattern.
· It likely topped with negative RSI divergence, then dropped in seemingly five waves, plus an ugly candle on Friday.
· This is an ominous Elliott Wave pattern suggesting at least a 3-wave correction (green labels/path), or possibly five waves down in a more bearish pattern (red labels/path).
· Even under a green, long-term bullish pattern, it could reach the 400 area to close the open gaps, before running to new highs.
· There is an open gap above, which MU might attempt to close in red 2 or green B.
· Under the red Elliott wave count, 5 waves down for (1) may hit the 100 range; this is on a linear scale. Alternatively, a log scale may be important to examine; in that case, a good target for (1) would be the 400 range.
· It's currently sandwiched between the 50-day and 100-day moving averages; a break of the 100D MA will confirm an intermediate-term downtrend.
· Given the gap above and multiple gaps below, the question arises: which one will be filled first?
· Are memory computer memory chips about to fall off the table?
· Their price gyrations are already causing major disruptions to the Korean stock market.
· If they continue to fall, they will keep pressuring the semiconductor index (SOX) and, consequently, the NASDAQ 100 also.
