Goldman Sachs Downgrades Micron Technology

I was scanning through stocks that made substantial pre-market moves to bring to your attention and I found just that in Micron Technology MU. The tech firm was more than 3% lower before the bell thanks to a downgrade from Goldman Sachs GS. The brokerage cut MU to neutral from buy. Goldman noted that it "underestimated the impact tablets would have on the PC supply chain, with tablets cannibalizing notebooks faster and to a greater degree than we [the brokerage] had expected." Goldman Sachs also stated that MU was negatively impacted by Inotera's delay of its 50mm transition. Not only did Goldman Sachs downgrade MU, but it also issued a price target adjustment from $12 to $7.85. This move gave me reason to take a look at the stock's technical performance. MU has been in a steady slide lower since the middle of April when the stock ticked above the $11 level. Since then the stock has fallen into the $7 region. This downgrade may make the stock test the support of both the $7 level and the equity's 20-month moving average. The shares just reclaimed this trendline after a prolonged period of resistance, so any support could be tenuous at best. See the rest here.