Chip maker Micron Technology (MU) -Get Micron Technology, Inc. Report has seen some big up and down swings in recent weeks in reaction to global events and analyst actions.$美光科技(MU)$
Now, TheStreet’s Bruce Kamich is checking out the charts to see if MU might see calmer action in the future.
“In our daily bar chart of MU, we can see a number of rapid up and down swings over the past several months,” he said. “Buy and hold investors have probably had some sleepless nights and even number traders have probably been challenged. Prices are below the declining 50-day moving average line but are testing the underside of the flat 200-day moving average line.”
Additionally, Micron’s On-Balance-Volume (OBV) has slowly turned lower from the middle of February telling us that traders have become more aggressive sellers, and its Moving Average Convergence Divergence (MACD) oscillator is bearish.
More research notes MU Prices have traded sideways for more than a year. “MU is below the 40-week moving average line and the weekly OBV line has been weak,” Kamich said. “The MACD oscillator made a lower high this year versus last year even though prices made a slightly higher high. This is a significant bearish divergence. The oscillator is pointed down and near the zero line.”
“In the short-run, trading in MU could remain unsettled,” he said. “The key area I am watching is the October low - hopefully prices can rebase above it.”
By BRIAN O'CONNELL
Resource: The Street
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