Micron Technology Sees Bounce Off Support, Heads Toward Resistance

Micron Technology Inc. MU shares were trading higher Wednesday after a Wall Street Journal report said Western Digital Corp. WDC is in talks to merge with Japan’s Kioxia Holdings Corp. in a deal possibly worth $20 billion.

Micron Technology was up 2.86% at $74.04 at last check.

Micron Technology Daily Chart Analysis

• The stock is heading higher toward resistance after making a bounce off support in what technical traders call a falling wedge pattern.
• The stock trades below both the 50-day moving average (green), and the 200-day moving average (blue), indicating recent sentiment in the stock has been bearish.
• Each of these moving averages may hold as an area of resistance.
• The stock bounced off pattern support and has moved higher inside the pattern in recent days. The price will likely be condensed more in the pattern until it gets squeezed above resistance or below support.
• The Relative Strength Index (RSI) has been pushing higher and nearing the middle line. The RSI sits at 48, meaning there are slightly more sellers in the stock than buyers.

What’s Next For Micron Technology?

Bullish traders want to see the stock form higher lows within the pattern and move up to pattern resistance. Bulls would then like to see the stock break above pattern resistance and start moving higher.

Bearish traders would like to see the stock fall lower and drop below the pattern support. If price falls below pattern support, then the stock may see a further push down.