Can Micron Undo the DeepSeek Selloff?Micron Technology plunged two weeks ago when China’s DeepSeek model disrupted Silicon Valley. But some traders may see potential for a rebound.
The first pattern on today’s chart is the gap from Monday, January 27. Does that empty space create potential for prices to fill?
Second is the September 12 low at $84.12. MU remained above the level despite the DeepSeek fears. That higher low on the weekly timeframe may be consistent with resumption of a longer-term uptrend.
Third, cautious guidance drove prices lower in December but the memory-chip maker held its September low. That could reflect optimism about business improving.
Next, the stock is below its 200-day simple moving average (SMA). Given secular growth in its business thanks to AI, some investors may see a long-term value opportunity.
Finally, MU has traded an average 215,500 options contracts per day in the last month. (It’s the 13th most active underlier in the S&P 500 in that time, according to TradeStation.) That could help traders looking to position for a rebound with vertical spreads.
TradeStation has, for decades, advanced the trading industry, providing access to stocks, options and futures. If you're born to trade, we could be for you. See our Overview for more.
Past performance, whether actual or indicated by historical tests of strategies, is no guarantee of future performance or success. There is a possibility that you may sustain a loss equal to or greater than your entire investment regardless of which asset class you trade (equities, options or futures); therefore, you should not invest or risk money that you cannot afford to lose. Online trading is not suitable for all investors. View the document titled Characteristics and Risks of Standardized Options at www.TradeStation.com . Before trading any asset class, customers must read the relevant risk disclosure statements on www.TradeStation.com . System access and trade placement and execution may be delayed or fail due to market volatility and volume, quote delays, system and software errors, Internet traffic, outages and other factors.
Securities and futures trading is offered to self-directed customers by TradeStation Securities, Inc., a broker-dealer registered with the Securities and Exchange Commission and a futures commission merchant licensed with the Commodity Futures Trading Commission). TradeStation Securities is a member of the Financial Industry Regulatory Authority, the National Futures Association, and a number of exchanges.
Options trading is not suitable for all investors. Your TradeStation Securities’ account application to trade options will be considered and approved or disapproved based on all relevant factors, including your trading experience. See www.TradeStation.com . Visit www.TradeStation.com for full details on the costs and fees associated with options.
Margin trading involves risks, and it is important that you fully understand those risks before trading on margin. The Margin Disclosure Statement outlines many of those risks, including that you can lose more funds than you deposit in your margin account; your brokerage firm can force the sale of securities in your account; your brokerage firm can sell your securities without contacting you; and you are not entitled to an extension of time on a margin call. Review the Margin Disclosure Statement at www.TradeStation.com .
TradeStation Securities, Inc. and TradeStation Technologies, Inc. are each wholly owned subsidiaries of TradeStation Group, Inc., both operating, and providing products and services, under the TradeStation brand and trademark. When applying for, or purchasing, accounts, subscriptions, products and services, it is important that you know which company you will be dealing with. Visit www.TradeStation.com for further important information explaining what this means.
