MU, SNDK and QCOM Forecasts – Rising Interest Rates Drag Tech Momentum

MU Technical Analysis

Micron looks like it’s going to open soft on Wednesday as we are likely to continue the overall consolidation after the big grind higher, and it is worth noting that the jobs report comes out on Thursday, not Friday this week, as Americans will be away from work on Friday heading into a 3-day weekend to celebrate Independence Day. The $1,000 level is an area that I think a lot of people will be watching to see if it offers support. The $1,300 level above is a bit of a target. That being said, if we do pull back, I think a bounce offers an opportunity, as it is just a continuation of this grinding channel that we’ve been in for some time.

SNDK Technical Analysis

SanDisk also looks like it is going to drop right away, and now I’ll be watching somewhere between $2,000 and $1,950 for an opportunity to start buying again. I don’t have any interest in shorting, and really, at this point in time, it would not be a huge surprise to bounce around between the $1,950 level and the $2,400 level because we would have to work off the excess froth from the previous run to the upside.

QCOM Technical Analysis

Qualcomm is sitting right on support, and we’ll have to see whether or not it’s going to break down. It is worth noting that we are halfway between the 50-day EMA and the 200-day EMA indicators. This is a market that I think is possibly going to break down. If we break down below the 200-day EMA, that would be very ugly.

On the other hand, if we can turn around and recapture the 50-day EMA, I think that would show that we are seeing buying pressure come back into the market that might be sustainable. All three of these companies are dealing with higher rates as the US interest rates are jumping a bit, and that gives us a little bit of a drag.

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