US Memory Sector Gains Pre-Market as Micron Rises Over 3%; Correction May End

TradingKey - Before the market opened on August 4 Eastern Time, the US storage sector strengthened collectively, with Micron Technology ( MU) rising over 3%, SanDisk ( SNDK) rising about 3%, SK Hynix ADR ( SKH Y) rising over 2%. Prior to this, Micron's stock price experienced a significant correction, falling back more than 30% from its historical high, and the market once worried that the AI storage boom was cooling down. However, with the sentiment in the storage sector warming up, capital has begun to refocus on the recovery opportunities for Micron's stock price.

Micron's stock price weekly chart, Source: TradingView

Looking at Micron's weekly stock price chart, although the stock price once fell below $800 last week, it completed the closure of the $750-$820 gap below. Meanwhile, it retraced to the SMA20 line during the week. By Friday's close, the stock price still stood firmly above $800, and the weekly candlestick showed a long lower shadow, indicating strong support at the SMA20 and suggesting that short-term bullish momentum has strengthened.

Meanwhile, at this week's open, the stock price still closed firmly above the SMA20 line on Monday, indicating that market sentiment is gradually turning bullish. Micron's stock price correction may be nearing its end, ushering in a technical recovery and rebound.

On the upside, the primary resistance level above to watch is the $890-$900 range. If the stock price stands firmly above $900, the upside potential towards $1,000 will be unlocked. Conversely, if the stock price remains under pressure below $900, the stock price may maintain a range-bound fluctuation in the $800-$900 range in the short term.

On the downside, if the stock price falls below last week's low of $737.88, it may enter a deeper correction phase and could further drop towards the Fibonacci 0.618 retracement level around $672.