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Micron Stock Could Rally Into the Upper $70s

Alan Farley

Micron Technology, Inc. ( MU) has defied gravity in recent months, with shares gaining more than 46% so far in 2018 despite fears of a cyclical top in the semiconductor industry and Chinese trade tensions that have the power to affect foreign revenues. The stock turned sharply lower in the first half of the second quarter, dropping more than 18 points off the March high at $63.42, and took back those losses at a rapid pace into the end of May. It posted a bull market high at $64.66 at month's end and has spent the past two weeks carving the handle of a cup and handle breakout pattern that could attract intense buying power in the coming weeks. The rally into March ended at the .618 Fibonacci retracement of the eight-year downtrend into 2008, with a breakout above that level opening the door to the .786 retracement level in the upper $70s.