Micron Technology (MU) Technical Analysis & Trade Recommendation

 Price Action & Trend Analysis

Micron Technology (MU) has been trading within a range of approximately $85 to $110 over the past few months. The stock recently faced resistance near $100 and has pulled back toward the $92 level. The price is hovering around the 50 EMA and 100 EMA, which may serve as dynamic support.

Moving Averages & Indicators

• Exponential Moving Averages (EMAs):

  • The 9 EMA and 20 EMA are trending close together, indicating a potential consolidation phase.

  • The 50 EMA and 100 EMA remain relatively flat, suggesting no clear directional trend.

• MACD (Moving Average Convergence Divergence):

  • A recent SELL signal was triggered as the MACD line crossed below the signal line.

  • The MACD histogram has turned negative, confirming a bearish momentum shift.

• RSI (Relative Strength Index):

  • The RSI is approaching the oversold region but remains above 30, indicating that the stock still has room for further downside before becoming oversold.

  • The RSI previously generated a BUY signal in early March when it was near 30, leading to a short-term price rally.

Volume Analysis

• Volume spikes have coincided with key movements in price, particularly around earnings and technical signals.

• A notable increase in selling volume aligns with the recent SELL signal, confirming downside pressure.

Buy Entry Recommendation

• Potential Buy Zone: Around $90 - $92 (current price $92.13).

• Rationale for Entry:

  • If the price finds support around the 50 or 100 EMA and volume stabilizes, a bounce-back trade may be considered.

  • Confirmation would be needed via a MACD crossover or RSI reversal above 50.

• Stop Loss: Below $88, in case of further downside.

• Target Price: First target $98, second target $105 (near previous resistance levels).

Conclusion

Currently, MU is in a weak position with bearish indicators dominating. However, a potential buy opportunity may arise if support holds around the $90-$92 level. Traders should watch for a MACD crossover, RSI reversal, and price stability before entering a long position.

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