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How Micron Stock Can Top Its All-Time Highs From 2000

Micron stock is ripping higher after a better-than-expected earnings report. Here's how the stock can reach records from here.

Micron  (MU) - Get Micron Technology, Inc. Report stock is trading higher on Tuesday after a better-than-expected earnings report.

The Boise, Idaho, chipmaker beat on fiscal-first-quarter earnings and revenue expectations. Even better? Management’s outlook for next quarter came in ahead of expectations.

The move sent Micron to multimonth highs and helped kickstart a rally in the semiconductor space.

While the Nasdaq is up 1.2% and hitting session highs this afternoon, the VanEck Semiconductor ETF  (SMH) - Get VanEck Semiconductor ETF Report is up almost 2%.

The strong results led to a number of price target increases from the analysts.

In fact, one Real Money contributor has Micron climbing the ranks among his favorite semiconductor stocks (although the favorites are still names like Nvidia  (NVDA) - Get NVIDIA Corporation Report and Advanced Micro Devices  (AMD) - Get Advanced Micro Devices, Inc. Report, among others).

The question I have is: Will the earnings report be enough to send Micron stock to new all-time highs?

The answer could be yes. Here’s how.

Trading Micron Stock

Daily chart of Micron stock.

Daily chart of Micron stock.

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A look at Micron shows the stock's powerful rally in November. It ran from sub-$70 to $87.71 at the high.

Along the way, it reclaimed both the 50-day and 200-day moving averages, a big feat for a stock that was under tremendous pressure for the past several quarters.

After that rally, the shares were consolidating, forming a wedge pattern ahead of the earnings report. With Tuesday’s rally, Micron stock is resolving up and out of this wedge.

The hope from the bulls is that it can continue to push higher.

Specifically, I’m keeping my eye on that aforementioned November high of $87.71. As long as Micron remains above that level, the stock will be in the midst of a monthly-up rotation.

The shares momentarily cleared $90 and then retreated. But if Micron stock can again clear this level and the post-earnings high (currently at $90.25), then we could see a push to the $95 to $96 resistance area.

The all-time high isn’t too far off at that point, at $97.50.

For those wondering, no, that is not the high from earlier this year when Micron stock hit $96.96. It’s the all-time high from July 2000.

So if Micron stock can gain enough post-earnings momentum here, not only is the $95 to $97.50 area in play, but the $100-plus level as well.