Earnings

Micron Technology, Inc. (MU) technical analysis: Which way the stock is headed?

Micron Technology, Inc. (NASDAQ:MU) fell by -0.10% in Thursday’s trading session from $34.59 to $34.56 The stock price went upward in 7 of the last 10 days and has generated 9.32% during the last two weeks. There was a decrease in both volume and price. This is usually interpreted as a good sign as traders widely believe falling stock should see declining volume. Traded activity experienced a fall of -21.89 million shares and in total 19.55 M shares exchanged hands for about $675.45 million.

Inside MU’s Recent Trend

Micron Technology, Inc. (MU) lies in the upper part of a wide and weak rising trend in the short term, and this will normally pose a very good selling opportunity for the short-term trader as reaction back towards the lower part of the trend can be expected. A break-up at the top trend line at $34.60 will firstly indicate a stronger raising rate. Short-term traders are predicted to see a rally of 2.77% over the course of a quarter and, with 90% chance the price will be floating in the range of $28.62 and $35.56 in this timeframe.

Micron Technology, Inc. Technical Signals



MU has witnessed its long term and short term MA triggering a buy signal. Many traders watch for short-term averages to cross above long-term averages to signal the beginning of a uptrend. Upon corrections, the price will meet support from the averages between $33.48 and $30.50. A break down through these support points will trigger sell signals. Some other technical concerns emerged as well, putting in risk the future growth of the stock in the next couple of days. Its pivot point high generated sell signal on Wednesday September 13, 2017, which calls for additional declines until the stock forms a new pivot point low, as this could be a buying opportunity. The downbeat movement of both volume and price during the recent session is interpreted as a good sign because traders usually believe falling stock should see declining volume.

Micron Technology, Inc. (NASDAQ:MU) Support And Resistance Levels

In case of pullback, the next support the price will capture from accumulated volume will not be far away from current price at $32.01 and $31.47. In case of gains, the next resistance from accumulated volume will not be far away from today’s level at $34.59.




It is important to note, however, that the stock needs to make its way through natural risk while testing a key support level. Once this support is broken, another support level will be to be established at a lower level. Turning back to this stock, Micron Technology approaches the first support point just current price at $32.01. In case of a break, the next support we will see from accumulated volume is going to be at $31.47 and $29.86. Accumulated volume is going to prevent the price from rising further at $34.59 and this action will lead the price to take a temporary pause or stay muted for a few days.

Micron Technology, Inc. (MU) Risk Assessment

A volatility based measure Bollinger Bands suggests this stock poses high risk. In the most recent session, the stock price hovered around $0.55 between high and low, or 1.60%. The average volatility for the past week stood at 2.19%.

The stock is in overbought condition based on RSI(14) readings and sits at the top end of the trend. In general, this offers great exit point for the short term traders. The RSI above 70 combined with the trend position poses greater risk so increased volatility should be expected. The stock correction is due. The decline may accelerate to the downside in the near term but it is reasonable to consider what the key support levels may be that would support a bounce back to the upside for stock.

Previous ArticleNext Article

Related Post

Fundamentals in Focus for American Airlines Group ... American Airlines Group Inc. (NASDAQ:AAL) is in the highlights and many would want to know whether now might be a good time for it to present much ups...
Fundamentals in Focus for Impax Laboratories, Inc.... Impax Laboratories, Inc. (NASDAQ:IPXL) is one of the active stocks and its unusual movement is raising eyebrows among traders. Now trading with a mark...
Chegg, Inc. (CHGG) vs. Houghton Mifflin Harcourt C... Chegg, Inc. (NYSE:CHGG) and Houghton Mifflin Harcourt Company (NASDAQ:HMHC) are the two most active stocks in the Education & Training Services in...
Cisco Systems, Inc. (CSCO): Don’t Let the He... Cisco Systems, Inc. (NASDAQ:CSCO) gained 0.28% in the first business day of September, going up from its prior closing price of $32.21 to $32.30, and ...
Fidelity National Financial, Inc. (FNF): How Do th... Fidelity National Financial, Inc. (NYSE:FNF) seems to be forming a pattern of major movements, providing only some crumbs of outlook for market partic...