What's Up And What's Next For Micron Technology?

Micron Technology, Inc. MU shares are trading lower Tuesday amid reports suggesting the prices for the company’s core DRAM memory chips are likely to decline next year. The past few months the stock has fallen in what traders call a wedge pattern.

Micron Technology was down 3.61% at $66.72 last check Tuesday at market close.

Micron Technology Daily Chart Analysis

• Shares have been falling toward pattern support in what technical traders call a falling wedge pattern.
• The stock has been in a downward trend for the past few months and had narrowing highs and lows. The stock is nearing the end of the pattern where it may see a break of resistance or support and a possible stronger move.
• The stock is trading below both the 50-day moving average (green) and the 200-day moving average (blue), indicating sentiment in the stock has been bearish.
• The stock may find resistance near either of these moving averages in the future.
• The Relative Strength Index (RSI) has been diving lower the past few weeks and sits at 26. This RSI is in the oversold area indicating the selling pressure greatly outweighs the buying pressure in the stock.

See Also: Why Micron Technology Shares Are Falling

What’s Next For Micron Technology?

Bullish traders want to see the stock bounce off the pattern support and head higher. Bulls are then looking for a break of pattern resistance for the stock to possibly see a long-term trend change.

Bears look to be in control of the stock and would like to see the stock be able to stay below the moving averages and the pattern resistance. Bears may like to see the stock fall below pattern support for a possible strong bearish move.

Photo: Courtesy Micron Technology