Is Micron Technology's Stock Doomed?

Micron Technology Inc. MU shares are trading lower Wednesday alongside many other chip-maker stocks, which are also likely cooling off this week after gaining ground last week.

Micron Technology was down 1.66% at $74.65 at last check Wednesday.

Micron Technology Daily Chart Analysis

• Shares saw a possible move below support in what technical traders would call a sideways channel.
• The stock is trading below both the 50-day moving average (green) and the 200-day moving average (blue), indicating the stock has been bearish.
• Each of these moving averages may hold as an area of resistance in the future.
• The $95 level has held as resistance in the past and may continue to in the future, while the $75 level has held as support in the past and may hold again.
• The Relative Strength Index (RSI) has been dipping lower throughout the week and now sits at 39. This shows there was a strong presence of selling pressure in the stock during the week.

What’s Next For Micron Technology?

Bullish traders would like to see the stock bounce back and recover the $75 level. Bulls would then like to see the stock start forming higher lows and move upward.

Bears would like to see the stock fall lower and stay below the $75 support line. If the stock could begin to hold the $75 level as resistance it may be ready for a further downward push.

See also: HOW TO BUY MICRON TECHNOLOGY, INC. (MU) STOCK
Photo: Courtesy Micron Technology