The Philadelphia Semiconductor Index (SOX.X) 388.72 +7% leads sector gainers after Goldman Sachs Asia upgraded the Asian DRAM sector with the thinking that DRAM-makers may be set to embark on a 12 to 18-month bull market for that group.
Share of group bellwether Micron Technology (NYSE:MU) $22.39 +9.21% have traded a session high of $23.60 as this stock attempts to put in a double-bottom on its bar chart. Micron's point and figure chart has generated two "buy signals" since June 28th and currently as a bullish vertical count of $31.50 associated with its chart.
Micron Technology Chart - Daily Interval
Micron Technology (MU) $22.39 +9.21% looks to have put in a long- term double-bottom and may have bears and bulls looking for any type of "filling of today's gap" as entry points for buying positions. Traders can perhaps use the above bar chart and trading history dating back to mid-October to trade Micron. In mid-October, shares of MU jumped above the 19.1% retracement level, then dipped back below that $21.85 mark for four-sessions giving a bull ample opportunity to establish positions, while giving bears an opportunity to cover on short-term weakness.
According to Dorsey/Wright and Associates, the semiconductor sector is "bear confirmed" with just 14.72% of the stocks in this sector showing a "buy signal" on their point and figure charts. Micron Technology is one of the stocks currently on a buy signal and today's call out of Goldman Sachs Asia appears to have some MARKET confirmation behind it as the "buy signal" in Micron (MU) came before today's call, but getting some follow through today.
While not a DRAM chip-maker, Dow component Intel (NASDAQ:INTC) $19.00 +7% is helping drive Dow Industrial (INDU) 9,285 +2.54% to a 231 point gain.