Micron’s Chart Hints at Chip Sector Improvement

Micron Technology (MU), a manufacturer of memory chips, reported fourth quarter earnings after Tuesday’s closing bell. The report comes amid a decline in chip prices, as the market works its way through a supply glut. 

Micron earned $1.08 per share, on revenues of $6.06 billion. The company was expected to earn .95 cents per share on revenue of $5.3 billion.

Micron has been an underperformer this year. As of Tuesday’s close, the stock was down 4.8% year to date. This compares unfavorably to the S&P 500, which has gained 3.24%, and the Nasdaq, which has gained nearly 30% so far this year. 

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Micron vs. S&P 500 vs. Nasdaq 100. Chart by TradeStation

However, there is good news for Micron bulls. While the major indices have had a tough month in September, Micron has been climbing higher. The relative strength of this stock vs. the major indices has been

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