Micron Technology Is Close to Resistance

Published on Thursday, 24 January 2013 07:16 Written by TradersHuddle Wire

New York, January 24th (TradersHuddle.com) - Shares of Micron Technology, Inc. (NASDAQ:MU) are trading very close to calculated resistance at $7.99. The stock ended the trading session at just $7.78, 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 $6.07 and by the resistance level at $7.99; 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 $6.07 it will definitely provide a reference point to establish a trade. On the other hand, if the stock breaks above its resistance level at $7.99 then traders will get an opportunity to enter the stock as it moves to a higher range.