Bullish Trendline Could Give Chip Stock A Boost

Group 1 - Micron Technology (MU) stock is experiencing its third consecutive daily loss but maintains a year-to-date gain of 40.3% [1] - The stock has struggled to surpass its 52-week high of $129.85 from June 26, with a recent attempt in early August falling short, while the $110 level has provided support during pullbacks [1] - Recent losses have brought MU close to a historically bullish trendline [1] Group 2 - The stock is currently within 0.75 of the 50-day trendline's 20-day average true range (ATR), having spent over 80% of the last 10 days and two months above this level [3] - Historical data shows that similar conditions have led to an 86% success rate for the stock being higher one month later, with an average gain of 5.5% [3] - A potential move from the current price of $117.97 to $124.45 would reflect this historical trend [3] Group 3 - A reduction in pessimism among short-term option traders could support MU's upward momentum, as indicated by a Schaeffer's put/call open interest ratio (SOIR) of 1.10, the highest in the past year [4] - Options are currently reasonably priced, with a Schaeffer's Volatility Index (SVI) of 45% ranking in the low 12th percentile of its annual range, suggesting low volatility expectations from options traders [4]