Shares of Micron Technology (MU) may remain in focus on Tuesday after leading a broad chip rally earlier in the week, amid optimism that robust demand for artificial intelligence (AI) will continue to drive sector growth this year becomes.

The move came Monday after contract electronics maker Foxconn reported record fourth-quarter revenue driven by booming demand for AI servers, while Microsoft (MSFT) recently announced plans to raise $80 billion in data centers in fiscal 2025 invest to advance AI technology.

Micron, a memory chip maker, is well-positioned to benefit from rising demand for AI infrastructure as its silicon is used in the latest AI processors from chipmakers such as Nvidia (NVDA) and Advanced Micro Devices (AMD).

Shares of Micron rose 10.5% on Monday to close at $99.26. In just three trading sessions this year, the stock has gained 18%, easily outpacing the iShares Semiconductor ETF (SOXX)’s 6% return over the same period.

Below we take a closer look at Micron’s chart and use technical analysis to identify price levels worth watching.

Stock rallies from key support area

Since bottoming out in early August, Micron shares have remained range-bound, which has helped establish easily identifiable support and resistance levels on the chart.

The stock last saw a decline in mid-December, but immediately found buying interest near the swing lows in August and September. Importantly, the rally from this key support area occurred on Monday with the highest trading volume since mid-December, suggesting there is a buying conviction behind this move.

Let’s identify some key overhead areas that could play a role if the stock continues its upward momentum and also highlight some key support levels that could find support on declines.

Key overhead areas to keep an eye on

Follow-up buying could send shares higher to $110, a place where they could face overhead resistance near the 200-day moving average and a trendline that marked several highs and levels between March and December Lows on the chart connect.

A more bullish advance could trigger a rally to the $130 level. Investors in this range could look for exit points near the April peak, which also sits alongside a number of comparable prices on the May-July chart.

Important support levels to monitor

During the retracements, investors should first pay attention to whether Micron bulls can defend the $97 level. This area, currently just under 2% below Monday’s close, could find support near a horizontal line that connects a series of comparable price movements on the chart since early March.

Eventually, a break below this level could see shares hit back to lower support around $85. Investors may look to accumulate stocks in this region near last month’s lows, which coincide with the prominent lows in August and September.

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At the time of writing, the author does not own any of the securities mentioned above.