MU Retreats 6.7% Will $255 Resistance Break

$Micron Technology(MU)$

Micron Technology (MU) Plunges -6.70%: Memory Giant Tests Support as Semiconductor Correction Deepens

Latest Close Data

MU closed at $241.14, down -6.70% (-$17.32) on December 15th, testing critical support levels.

The stock remains 8.9% below its 52-week high of $264.75, with heavy volume at 25.94M shares (1.31x average).

Core Market Drivers

Memory semiconductor sector faces headwinds from AI demand normalization concerns and inventory adjustments.

Capital outflows dominated with $2.21B net selling pressure, as institutional profit-taking accelerated ahead of year-end positioning.

Technical Analysis

RSI(6) dropped to 46.80 from overbought territory, signaling momentum shift.
MACD shows DIF at 8.46 with positive DEA at 7.52, maintaining bullish crossover but weakening.
KDJ K-line at 72.46 indicates continued selling pressure from recent highs.

Key Price Levels

Primary Support: $236.22 (December 12th low)
Strong Resistance: $255.82 (session high)
Immediate Pivot: $241.22 (previous resistance now support)

Valuation Perspective

Trading at P/E 31.77x vs semiconductor sector average of ~25x.

Forward P/E of 12.74x suggests earnings growth expectations remain robust. P/S ratio of 7.26x reflects premium memory market positioning.

Analyst Targets

39 institutions maintain average target of $241.68: 13 Strong Buy, 27 Buy, 4 Hold ratings (87% bullish sentiment).

Target range spans $86.28-$362.00, indicating significant valuation dispersion.

Weekly Outlook

Expect consolidation between $236-$255 range as memory cycle concerns weigh on sentiment.

Breakout above $260 could target $275, while breach below $235 may trigger test of $220 support zone.

Risk Disclaimer

This analysis is for informational purposes only and does not constitute investment advice. Past performance does not guarantee future results.

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