Micron Technology Is Near a Key Resistance Area

Published on Wednesday, 13 June 2012 08:24 Written by TradersHuddle Wire

New York, June 13th (TradersHuddle.com) - Shares of Micron Technology, Inc. (NASDAQ:MU) are trading very close to calculated resistance at $6.04. The stock ended the trading session at just $5.92, which is near levels that make it difficult to buy or start a position.

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

Micron's stock range is defined by its calculated support defined at $5.30 and by the resistance level at $6.04; the stock is clearly over-extended from support, making it harder for participants to establish fresh longs.

Traders don't have a clear entry point for Micron Technology. However, as the stock pulls back towards $5.30 it will definitely provide a reference point to establish a trade. On the other hand, if the stock breaks above its resistance level at $6.04 then traders will get an opportunity to enter the stock as it moves to a higher range.