Micron shares appear set for further losses
MU•Technical analysis indicates Micron shares may fall toward $887 to $903, then possibly $770 to $807, after breaking below a rising wedge. A climb above $1,010 to $1,030, especially at a weekly close, would probably ease the bearish outlook.
1. Chart points lower
Micron shares have gained around 220% this year but have struggled since peaking in June. After dropping more than 40% from their June 25 all-time high of $1,255, the shares recovered in August and formed a rising wedge on the weekly chart; this week, they fell below its lower line.
2. Momentum weakens
The Relative Strength Index and Moving Average Convergence Divergence are both pointing lower. The analysis suggests Micron is likely to fall toward $887 to $903 and possibly $770 to $807. A rise above $1,010 to $1,030, especially if the shares end a week there, would probably fade the negative outlook.
