Micron Technology Closing in to Resistance

Published on Thursday, 26 January 2012 08:12 Written by Christian Paolinetti

New York, January 26th (TradersHuddle.com) - Shares of Micron Technology, Inc. (NASDAQ:MU) are trading very close to calculated resistance at $8.06 with the current price action closing at just $7.86 placing the stock near levels that make it difficult to buy.

Micron Technology, Inc. (NASDAQ:MU) manufactures and markets dynamic random access memory chips (DRAMs), Flash Memory, other semiconductor components, and memory modules.

Micron's current stock range is defined by current calculated support defined at $5.31 and by the resistance level at $8.06, the stock is clearly over-extended from support, making it difficult to establishing new long positions at this level.

Traders don't have a clear entry point for Micron Technology, as the stock is well above support, however, as the stock pulls back towards $5.31 it will definitely provide a reference point to establish a trade. On the other hand if the stock decides to break above resistance level at $8.06 then traders will get an opportunity to enter Micron Technology stock by establishing a position as the stock moves to a higher range.