Micron Stock Price Levels to Watch After Memory Chip Maker’s Blowout Earnings

Micron just dropped an earnings bomb that's shaking the semiconductor sector.

The memory chip giant's latest numbers are turning heads from Wall Street to Silicon Valley—proving that demand for high-performance chips isn't just holding strong, it's accelerating.

Key Price Levels Traders Are Watching

Keep your charts locked on these critical resistance and support zones. The stock's poised for a potential breakout if bullish momentum holds, but don't ignore the profit-taking traps that often follow big earnings pops.

Memory Market Defies Gravity

While traditional analysts keep waiting for the semiconductor cycle to peak, Micron's execution continues to bypass the skeptics. The AI-driven data center demand alone could fuel this rally for quarters to come.

Of course, Wall Street will find something to worry about—they get paid to be nervous while the rest of us execute trades.

Key Takeaways

• Micron shares were little changed in premarket trading Wednesday after the memory chip maker posted better-than-expected quarterly results and issued a rosy forecast amid surging AI-related demand.
• During Wednesday’s trading session, investors should watch out for a potential breakout above a recently formed pennant pattern, a move that would indicate a continuation of the stock's strong uptrend.
• Bars pattern analysis projects a potential upside target on Micron's chart around $240, while key support levels sit near $155 and $129.

Micron (MU) shares were little changed in premarket trading Wednesday after the memory chip Maker posted better-than-expected quarterly results and issued a rosy forecast amid surging AI-related demand.

The company said late Tuesday it expects to generate fiscal first-quarter revenue of $12.20 billion to $12.80 billion. The midpoint of that range comes in well ahead of the $11.94 billion expected by analysts, with the guidance driven by booming demand for the company’s high-bandwidth memory chips and favorable pricing dynamics.

Heading into the earnings report, the Nvidia (NVDA) and Advanced Micro Devices (AMD) partner's shares had nearly doubled since the start of the year and surged 40% in September. The gains have been fueled by customers investing billions in AI chips to build data centers tasked with powering increasingly memory-intensive applications. The stock was down 0.2% at around $166 in recent premarket trading.

Below, we use technical analysis to identify important post-earnings price levels worth watching out for.

Pennant Pattern in Focus

After finding support NEAR the 50-day moving average, Micron shares trended sharply higher before consolidating in a pennant pattern over the past week.

While this month’s strong uptrend has coincided with the relative strength index crossing into overbought territory, the indicator remains below its June peak, signaling that the stock has further room to climb.

During Wednesday’s trading session, it’s worth watching out for a breakout above the pennant, a move that WOULD indicate a continuation of the recent bullish move.

Let’s turn to Micron’s chart to forecast an upside price target and also identify important support levels amid the possibility for earnings-related volatility.

Chart-Based Upside Price Target

If a post-earnings breakout MOVE occurs, investors can use bars pattern analysis to project an upside target. 

When applying the technique to Micron’s chart, we take the price bars comprising the strong move higher this month and reposition them from the pennant pattern’s top trendline. This forecasts a target of around $240, 44% above Tuesday’s closing price.

We selected this earlier trend to predict how a continuation move higher may play out on the chart if the stock has a similar bullish upward leg.

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Important Support Levels Worth Monitoring

During retracements in the stock, investors should initially keep a close eye on the $155 level. This area on the chart could provide support near the base of the pennant pattern and a brief pause in the stock’s strong uptrend earlier this month.

Finally, selling below this level could spark a fall toward $129. Investors may seek to accumulate Micron shares in this location near the June and August peaks, which currently sit just above the upward sloping 50-day MA.

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As of the date this article was written, the author does not own any of the above securities.