Trading Idea: Is Micron Technology Breaking Out?
Published on Thursday, 09 May 2013 07:32 Written by TradersHuddle Wire
New York, May 9th (TradersHuddle.com) - Shares of Micron Technology, Inc. (NASDAQ:MU) closed the session at $9.97 just above calculated resistance at $9.73. The stock moved to what appears to be a higher range, spurring attention from momentum buyers.
Micron Technology, Inc. (NASDAQ:MU) manufactures and markets dynamic random access memory chips (DRAMs), Flash Memory, other semiconductor components, and memory modules.
The stock was trading in a well defined range with support at $9.07 and resistance at $9.73. Given that this range was broken, traders will be closely monitoring Micron's price action to gather clues on the future direction.
From a technical perspective, it can be expected that previous resistance becomes support, as the new range gets defined. However, given that Micron Technology is still near the broken resistance level, traders will be focusing on the $9.73 level to see if the stock holds the breakout without rolling over.