Trading Idea - Is Micron Technology close to Resistance?

Published on Wednesday, 08 February 2012 09:12 Written by TradersHuddle Wire

New York, February 8th (TradersHuddle.com) - Shares of Micron Technology, Inc. (NASDAQ:MU) are trading very close to calculated resistance at $7.97 with the current price action closing at just $7.88 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 $7.29 and by the resistance level at $7.97, 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 $7.29 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 $7.97 then traders will get an opportunity to enter Micron Technology stock by establishing a position as the stock moves to a higher range.