Micron Technology stock price (NYSE: MU) fell 8.33% in the current month and the sell-off still continued. However, the MU stock price is still trading inside the upward-sloping channel and buyers are trying to bounce back.
Micron Technology’s stock price sustained above the 200-day EMA showcasing the trend is in upward directions. Presently, the price is near the 50 days which is acting as an immediate support for bulls.
At the beginning of July, MU stock price took support near $60.00. Later, a sudden rise in the buying volume was visible and prices also showed a decent bounce. Slowly, Micron technology share price recovered and rallied 21% approx and hit a swing high of $72.00.
The momentum in the MU stock halted near $72.00 and prices witnessed minor profit booking. The recent sell-off is considered a short-term retracement till prices sustain above the $60.00 support.
Micron Technology’s stock price closed the previous session at $65.44 with an intraday decline of -1.89%. The market capitalization stands at $71.68 Billion.
Will Micron Technology Stock bounce back from support?
Micron Technology stock (NYSE: MU) is in the initial phase of a bearish trend reversal. But the confirmation will come when the price drops below $60.00 level.
As of now, MU stock remains bullish for the long term and the possibility of a bounce back remains high. If buyers hold the price above the 50-day EMA then it might begin the journey to retest previous highs.
On the other hand, if MU stock price drops below $60.00 support then a bearish trend reversal will be confirmed. The technical analysis suggests stock might respect the $60.00 support and bulls will return back to track.
MU Stock formed a bearish engulfing pattern
MU Stock price fell 6.39% in the current week and formed a bearish engulfing pattern. It shows that 4% to 5% more downside is possible.
The MACD generated a fresh negative crossover and the histogram bar is declining indicating sellers are active. The RSI at 43 reverse down from the overbought territory denotes bears are strengthening their grip.
Conclusion
Micron Technology stock (NYSE: MU) is mildly bearish for the short term. But $60.00 might act as a strong support and the price may show a bounce back. The technical analysis suggests MU stock is in an uptrend and the possibility of bounce back is high.
Technical levels
- Resistance levels: $70.00 and $72.00
- Support levels: $60.00 and $56.00
Disclaimer
The views and opinions stated by the author, or any people named in this article, are for informational purposes only. They do not establish financial, investment, or other advice. Investing in or trading crypto assets comes with a risk of financial loss.
Steve Anderson is an Australian crypto enthusiast. He is a specialist in management and trading for over 5 years. Steve has worked as a crypto trader, he loves learning about decentralisation, understanding the true potential of the blockchain.
Source: https://www.thecoinrepublic.com/2023/08/11/micron-technology-stock-will-mu-stock-hold-the-60-support/