Micron Lower Despite Positive Comments On DRAM Market Conditions
Joel Elconin is the co-host of Benzinga's #PreMarket Prep, a daily trading idea radio show.
Micron Technology, Inc. (NASDAQ: MU) shares were trading lower by $0.55 (2 percent) at $26.64 in Thursday's session. Despite positive comments regarding the DRAM market from the chairman of Inotera, the issue in under-selling pressure.
Off a higher open ($27.33 vs. Wednesday's close of $27.19), the rally was halted just shy of the highs from Tuesday's ($27.58) and Wednesday's ($27.66) sessions. The ensuing decline has breached the series of five lows between $26.76 and $26.86 from May 7 through May 12.
So far, it has reached $26.58 and has not been able to mount much of a rebound. If the decline continues, there may be additional support at its April 8 low ($26.49).
It should be noted that on May 12, Micron was downgraded at Drexel Hamilton from Buy to Hold; Cleveland Research issued cautious comments, as well.
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