On June 4, the Direxion 2x Micron ETF declined 6.2% overnight, trading at $1,008.01/share, with trading volume of approximately $7.12 million. The leveraged ETF's decline reflects a pullback in underlying Micron Technology shares, amplified by its 2x exposure structure.
After Micron surged over 77% in May alone—its best monthly performance since 1987—and crossed $1,000 per share, multiple overbought signals emerged. The stock's 14-day RSI exceeded 70, a technical threshold widely viewed as a precursor to correction. Additionally, the average Wall Street target price of roughly $852 implies potential downside from recent levels near $1,064, while data services flagged seven warning signals for the stock. Analysts noted that despite strong AI-driven memory demand, the question is no longer whether demand exists, but how much of it is already priced in.
The near-term correction comes despite multiple firms recently raising Micron's target price, with Susquehanna setting a Street-high at $1,750 and Morgan Stanley lifting to $1,050, both maintaining outperform ratings.
(The above content is based on publicly available market information, generated by a program or algorithm, and is intended solely as a stock movement alert. It does not constitute investment advice or a basis for trading decisions.)
Comments