Semiconductor stocks tend to lead the way on a strong tape. The impressive rally late last week was typical of this, with the semiconductor sector benchmark rising between 3% and 4% on both Thursday and Friday, compared favorably with major indexes. Momentum and relative strength in the semiconductor sector drew us to Micron Technology, Inc. (MU)'s chart. The company has been on a long-term turnaround that began with a breakout of the weekly cloud model (shaded area on the chart). September 2023. Our long-term momentum indicators suggest that the cyclical uptrend could be sustained in the coming months, with a decisive turn positive in Q4 2023. As shown in the chart, medium-term momentum is very positive per weekly MACD. This suggests that MU may return to resistance at the 2021 high, which is the only major hurdle on the chart alongside the high from 2000. MU has entered a correction phase heading into 2024, but Friday's strength led to bullish shorts. The period momentum has changed, suggesting that the main uptrend is resuming. Initial support is the rising 50-day (10-week) moving average, currently near $80, above which a near-term bullish bias is justified. Finally, the MU reverses a three-year downward trend in its ratio to the S&P 500 Index (SPX), noting that it now maintains positive long-term momentum with a 200-day gain, and the broader equity It is poised to outperform the market. average. We expect MU, as well as many of its peers in the semiconductor sector, to further outperform as the cyclical bullish trend continues across the market. —Katie Stockton with Will Tamplin Get free access to Fairlead Strategies research here. Disclosure: (none) The above is subject to our Terms of Use and Privacy Policy. This content is provided for informational purposes only and does not constitute financial, investment, tax, or legal advice or a recommendation to purchase any securities or other financial assets. 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