ORCL, MU and AVGO Forecast – Picks and Shovels of AI Look Strong

Oracle Technical Analysis

Oracle looks like it’s going to jump based on premarket trading during the session on Thursday. All things being equal, I think short-term pullbacks offer buying opportunities with the 50-day EMA above at the $207.35 level as a potential barrier. If we break down from here, the $160 level would be an area that I think a lot of people would be paying close attention to.

All things being equal, this is a market that I think continues to be very choppy, but I do think that we are going to try to drive back towards the highs, as this is a great way of playing the AI sector without some of the extraordinarily overbought names.

Micron Technical Analysis

Micron looks like it is going to continue to launch as its high-bandwidth memory is a huge part of data centers. Therefore, it’s worth noting that AI chips cannot function without it and it is just launching. I think there’s nothing on this chart that suggests that you should be shorting.

The $350 level is probably the absolute floor at the moment, and really, at this point in time, I’d be surprised to see it pull back. Ultimately, I think we are going to break the $400 level in the next couple of days, if not here on Thursday.

Broadcom Technical Analysis

Finally, here at Broadcom, you can see that we’ve seen quite a bit of support at $320. It looks like we are going to jump higher. The $320 level is an area of significant support with the 200-day EMA sitting underneath it. If we can turn around and break above the 50-day EMA, then it’s possible that we could go looking to the $415 level.

I do think we eventually get there, but if we were to break down below the 200-day EMA, then it would kick off some type of complex head and shoulders. I don’t really have that as a likely scenario, but it is something worth watching. I remain bullish overall and think that all three of these stocks should perform fairly well.

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