One of the most heavily traded names in the chip space is holding a potentially key level.
Micron Technology (MU) dropped 38 percent from the start of June through yesterday. But now the giant producer of memory circuits is holding its ground above $36.50, an old peak from late 2014.
Worries about slowing demand and trade quarrels with China have hammered the stock, which tracks the boom-and-bust cycle of gadget demand. Troubles with Apple’s (AAPL) iPhone have contributed to the decline as well.
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Candlestick watchers may notice that MU has some potential reversal patterns recently. November 23 and 26 were both “outside days,” with higher highs and lower lows. November 27 was an “inside day,” with a higher low and a lower high. And then on Wednesday, another outside day.
Considering that MU’s trended lower, candlesticks like this could signal a reversal to the upside. The fact they’re happening near a key level like $35 could make it even more relevant in the eyes of technicians.
Finally, traders may want to remember that President Trump and Chinese President Xi will discuss trade at this weekend’s G20 conference. Given MU’s place in the global economy, traders may view it as a key way to react to either a positive or negative outcome to the event.