Micron Technology (MU) shares could remain in focus on Tuesday after leading a broad 澳洲幸运5官方开奖结果体彩网:chip rally to start the week amid optimism that robust 澳洲幸运5官方开奖结果体彩网:artificial intelligence (AI) demanꦜd꧟ will continue to drive sector growth this year.

The move Monday came after contract electronics manufacturer Foxconn posted record fourth-quarter revenue driven by booming demand for AI servers, while Microsoft (MSFT) recently announced plans to 澳洲幸运5官方开奖结果体彩网:invest $80 billion in data centers in fiscal 2025 to power ♔AI technology. 

Micron, a manufacturer of memory chips, stands well positioned to benefit from surging AI infrastructure demand as its silicon is used in the latest AI processors from chipmaking giants such as Nvidia (NVDA) and Advanced Micro Devices (AMD).

Micron shares jumped 10.5% on Monday to close at $99.26. In just three trading sessions this year, the stock has gained 18%, handily outpacing the iShares Semiconductor ETF’s (SOXX) 6% return over the same period.

Below, we take a closer look at Micron’s chart and use 澳洲幸运5官方开奖结果体彩网:technical analysis to identify price levels worth watching.

Stock Rallies From Key Support Area

Since bottoming out in early August, Micron shares have remained 澳洲幸运5官方开奖结果体彩网:rangebound, helping to establish easily identifiable 澳洲幸运5官方开奖结果体彩网:support and resistance levels on the chart.

More recently, the stock gapped lower in mid-December, but immediately found buying interest near the August and September 澳洲幸运5官方开奖结果体彩网:swing lows. Importantly, Monday’s rally from this key support area occurred on the highest 澳洲幸运5官方开奖结果体彩网:trading volume since mid-December, indicating buying con🦹viction behind the move.

Let’s identify several key overhead areas that could come into play if the stock continues its upward momentum and also point out a co⭕uple of important support levels that may attract support during dips.

Key Overhead Areas to Watch

Follow-through buying could see the shares move up to the $110 level, a location where they may run into overhead resistance near the 澳洲幸运5官方开奖结果体彩网:200-day moving average and a trendline that links multiple 澳洲幸运5官方开奖结果体彩网:peaks and troughs on the chart between March and December.

A more bullish advance may fuel a rally to the $130 level. Investors could look for 澳洲幸运5官方开奖结果体彩网:exit points in this area near the April peak, which also sits a💜longside a range of comparable prices on the chart from May🧸 to July.

Important Support Levels to Monitor

During retracements, investors should initially monitor if Micron bulls can defend the $97 level. This area, currently sitting just 2% below Monday’s closing price, could encounter support near a 澳洲幸运5官方开奖结果体彩网:horizontal line that connects a range of comparable 澳洲幸运5官方开奖结果体彩网:price action on the chart dating back to early March.

Finally, a 澳洲幸运5官方开奖结果体彩网:breakdown below this level could see the shares revisit lower support around $85. Investors may look to 澳洲幸运5官方开奖结果体彩网:accumulate st💖ock in this region near last month’s low, which aligns with the prominent August and September tr൲oughs.

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