Micron Stock Is Ignoring One Of The Market's Most Reliable Sell Signals — Here's Why

Micron Technology, Inc. (NASDAQ: MU ) stock has climbed so far, so fast that it is flashing one of the market’s most dependable warning signs . Chart created using Benzinga Pro The memory-chip maker has surged roughly 190% year-to-date, pushing shares about 197% above their 200-day moving average, 75% above their 50-day moving average. Its Relative Strength Index, or RSI, has climbed to over 78, a level technical traders typically associate with overbought conditions and elevated pullback risk. Yet Micron keeps making new highs. The question for investors is simple: Why isn’t the market taking profits? Technical Warning Signs Flash Red Historically, semiconductor stocks trading this far above long-term trend lines tend to cool off. Momentum indicators such as RSI are designed to identify exactly these kinds of stretched conditions. Micron’s chart checks many of those boxes. The stock is trading over 75% above its 50-day moving average and nearly 27% above its 20-day moving average. Meanwhile, the RSI remains firmly above the 70 threshold that many traders view as a ... Full story available on Benzinga.com