Chip producer Micron Technology (MU) traded 6% lower during the Thursday morning session. This happened after Swiss investment bank UBS initiated its coverage with a sell rating and a price target of $35.

Our analysis of MU’s market cycles on the weekly chart below suggests that UBS may be overstating the downside risk. The stock is currently approaching the conclusion of the declining phase of its current short-term market cycle. After that we should see a move higher in the near-term.

Micron (MU) Stock Chart with Weekly Bars

For an introduction to cycle analysis, check out our Stock Market Cycles video, or watch the askSlim Market Week show every Friday on our YouTube channel.

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