Semiconductor stocks tend to show an upward lead in strong bars. The impressive rally late last week was a case in point, with semiconductor sector indices rising 3% to 4% on Thursday and Friday, comparing favorably to the major indices. The momentum and relative strength behind the semiconductor sector attracted us to the Micron Technology, Inc. chart. (MU), which saw a long-term turnaround that began with a breakout above the weekly cloud pattern (shaded area on the chart) in September 2023. Our long-term momentum indicators turned decisively positive in Q4 2023, suggesting a cyclical uptrend. Sustainable in the coming months. Medium-term momentum is strongly positive according to the weekly MACD, as shown in the chart. This suggests that MU could see a return to resistance at the 2021 high, the only major hurdle on the chart, which is in line with the highs from 2000. MU saw a corrective phase to start 2024, but Friday’s strength led to a short trend Bullish. A longer-term momentum shift indicates a resumption of the underlying uptrend. Initial support lies at the bullish 50-day (10-week) moving average, currently near $80, above which ensures a short-term bullish bias. Finally, MU is poised to outperform the broader stock market, noting that it has reversed a three-year downtrend in its ratio versus the S&P 500 Index (SPX), which now has positive long-term momentum versus a 200-day bullish move. middle. We expect additional outperformance not only from MU, but also from many of its peers in the semiconductor sector as a cyclical uptrend sustains the broader market. —Katie Stockton with Will Tamblyn You can access research from Fairlead Strategies for free here. Disclosures: (None) The above content is subject to our Terms and Conditions and Privacy Policy. 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