Watch These Micron Price Levels as Stock Rises After AI-Driven Earnings Beat

Micron Technology (MU) shares moved higher in extended trading Thursday after the chipmaker posted better-than-expected results and issued a strong outlook, bolstered by surging demand for AI.

The memory chip maker and Nvidia (NVDA) partner saw its data center revenue triple in the fiscal second quarter from a year earlier amid strong demand for its high-bandwidth memory chips used in systems that develop and run AI software.

Micron shares have gained 22% since the start of the year as of Thursday’s close, though trade just 7% higher over the past 12 months as surging demand for the company’s AI offerings has been partially offset by modest demand for its chips used in smartphone and PCs. The stock rose 1% to $104 in after-hours trading Thursday.

Below, we break down the technicals on Micron’s weekly chart and point out key price levels worth watching out for.

Potential Symmetrical Triangle Breakout

Micron shares have traded within a symmetrical triangle since September last year, potentially forming a continuation pattern ahead of another move higher.

More recently, the stock found buying interest near the triangle’s lower trendline and could break out above the pattern in Friday’s trading session after the company’s upbeat results.

Let’s apply technical analysis to Micron’s chart to identify three key overhead areas that investors will likely be watching and also locate a crucial support level worth monitoring during pullbacks in the chipmaker’s stock.

Key Overhead Areas to Watch

Earnings-driven buying above the symmetrical triangle could see the shares initially make a move up to the $107 level. This area provides overhead resistance near the 50-week moving average and a horizontal line that connects a series of price points on the chart stretching back to April 2024.

A move above this area could spark a rally to around $130. Investors who have accumulated shares at lower levels may look for exit points in this region near last year’s April peak, which also closely aligns with a range of closing prices positioned just below the stock’s all-time high (ATH) set in June last year.

To forecast a potential upside target above the ATH, investors can use bars pattern analysis. To apply this technique, we take the price bars that make up the stock’s uptrend from October 2023 to June last year and overlay them from this month’s low. The analysis projects a target of around $200, nearly double Micron’s Thursday closing price.

We selected this prior trend as it followed an earlier symmetrical triangle on the chart, providing insight as to how a future move higher in the stock may play out..

Crucial Support Level to Monitor

During pullbacks in Micron shares, investors should keep tabs on the $85 level. The stock would likely find support in this area near a range of lows extending back to August last year and a consolidation period that formed on the chart in December 2023 and January 2024.

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