Market is losing steam from buying too much bitcoin over the week. Micron with the previous strong quarter revenue and forecast, the need for memory chips for AI memory remains strong especially when Nvidia has pushed SK for faster production.

Based on past trading record, there aren’t any other factors that affects the short and long term prospect of Micron. This dip is a good buying opportunity with a strong reversal by next week.

Technically analysis is not just about looking at one indicator. And also the fact that whenever MU breaks below MA50 after a strong earnings, it is usually follow by strong reversal trend especially when there are no substantial reasons for the dip.

This recent dip is a response to the knee-jerk effect of the Trump election and also that traders are cashing out to get in some actions on bitcoin and Tesla. The fundamentals remain strong.

Checking correlation of dip:

Trump-related issues?

Micron is based in US and last year Beijing did a partial ban on Micron. Despite that, sales is going strong. So any sauctions on China would actually be good for Micron. Other than the overbought situation after Trump election, there aren't any negative factors for Micron under the Trump Administration. Do not see the same risk as other semi when it comes to China risks.

Semiconductor equipment issues?

Demand for semiconductors and memory chips is still going strong as we can see that from Micron's recent quarters. Revenue has been growing at a steady rate with strong improved operating margins. And Micron does not belong to the semiconductor equipment sector Like ASML and AMAT.

Interest rate cut issues?

We can also see that their cash flow has been improving over the quarters showing resilient during a high interest environment. So a slow cut environment might do harm to other companies but not in the case of Micron.