TradingKey - As of the market close on October 8 Eastern Time, Micron (MU) closed at $1,035.84, down 4.79%, with an intraday high of $1,088.50 and a low of $1,032.10, on a volume of about 29.91 million shares. Just prior to this on October 7, Micron had surged 4.06% to $1,088; the sharp volatility over two consecutive trading days indicates widening short-term bull-bear divergence.

Notably, the AI and semiconductor sectors were under overall pressure that day, with one focus of market attention coming from OpenAI. According to the Financial Times, as of the end of September, OpenAI's annualized revenue was around $50 billion, about $20 billion lower than the roughly $70 billion previously rumored in the market. However, differences in statistical methodology may exist between the two sets of figures, so this cannot be directly interpreted as a sudden decline in the company's revenue. Following the news, the market reassessed the alignment between AI infrastructure spending and actual revenue growth, causing Nvidia (NVDA), Oracle (ORCL), as well as some AI supply chain stocks including Micron, to fall on the day.

Daily chart of Micron stock, Source: TradingView

Looking at Micron's daily stock chart, since Micron surged 5% on September 22 and approached $1,100, the stock has repeatedly tested the $1,100 mark recently without a breakthrough, indicating heavy short-term resistance at this level. If the stock is to open up further upside room, it first needs to break through and hold above $1,100 on heavy volume.

In terms of technical indicators, the 14-day RSI stands around 51.2, remaining in the neutral-to-bullish zone, indicating that overall market sentiment still favors the bulls. Meanwhile, although the stock fell 4.79% yesterday, it has not broken below the 20-day moving average, demonstrating a degree of support at this level.

Currently, the overall candlestick chart continues to maintain a head-and-shoulders bottom pattern, with the overall trend still biased upward. The primary resistance level on the upside to watch is $1,100; if broken, the stock will open up room for further upside toward $1,200, with the previous all-time high of $1,255 lying further above.

On the downside, the key support level to watch below is the $1,000 mark. If this level fails to hold, the stock may further test $960, with the $900 level situated further down.

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