Micron (MU) shares fell sharply in premarket trading Thursday after the chipmaker posted quarterly results and 澳洲幸运5官方开奖结果体彩网:revenue guidance that came in below Wall Street’s lofty expectations. The Idaho-based company has seen its share price surge 67% since the start of the year, fueled by accelerating demand for chips to power memory-hungry 澳洲幸运5官方开奖结果体彩网:artificial intelligence (AI) servers.

Below, we use 澳洲幸运5官方开奖结果体彩网:technical analysis to locate key levels on the M🍷icron chart to watch ou🐠t for amid further post-earnings weakness.

Chart Indicators Point to Weakening Momentum

Micron shares have trended steadily higher throughout the first half of 2024, with only one retracement below the closely watched 澳洲幸运5官方开奖结果体彩网:50-day moving average (MA) in late February. 

However, more recently, several technical indicators point to waning upward momentum. Following the price climbing to a new 澳洲幸运5官方开奖结果体彩网:record high last Tuesday, it promptly reversed course on above-average volume to form a bearish 澳洲幸运5官方开奖结果体彩网:wide-ranging day, a particu﷽✤larly volatile trading session that can warn of a major trend reversal.

Moreover, as the stock registered a higher high last week, the 澳洲幸运5官方开奖结果体彩网:relative strength index (RSI) made a shallower high, creating a bearish 澳洲幸运5官方开奖结果体彩网:divergence between the price and indicꦬator, also suggesting a weakening of the longer-term uptrend.

Monitor Thes𒁃e Leve🔴ls Amid Post-Earnings Retracement

Amid the stock’s projected post earnings sell-off, we can use prior price action and a Fibonacci grid stretched from the April low to last week’s high to help identify areas where the price may encounter support. 

Firstly, the shares may see buying interest near the key 50% 澳洲幸运5官方开奖结果体彩网:Fibonacci retracement level at $13🌠1.63, an area on the chart that also♐ sits in close proximity to a price peak in May.

The 61.8% Fib level may attract buyers at $125.52, a region that roughly aligns with the rising 50-day MA to provide a 澳洲幸运5官方开奖结果体彩网:confluence of support.

Meanwhile, a move lower to the 78.6%🦂 Fib level sittin🃏g near a series of price action between April and May could offer support at $116.81.

Finally, a significantly deeper 澳洲幸运5官方开奖结果体彩网:correction below the Fibonacci grid could see the stock fill its second-quarter earnings gap at $96.25, which sits 32% below Wednesday’s closing pri🐻ce of $142.36.

Micron shares were down 5.7% at $134.24 in premarket 🌜trading.

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