Looks Like Micron's Pullback Isn't Done

Shares of Micron (MU) are in danger of a deeper pullback. The stock broke below a key trendline in late July as overhead moving-average pressure intensified. MU is off another 3% today and is beginning to leave behind layers of supply. More downside is likely in the near term, and with it, a very low-risk entry opportunity.

Micron spent eight weeks consolidating following its March 24 earnings-inspired breakout. Finally, in late May the stock reached new highs but further upside was limited. As the late-June earnings report neared, it was clear MU had lost momentum. Despite the good news, the stock immediately sold off. MU bounced in late July but has been fairly weak over the last two weeks. With a third straight lower monthly low in place, the pattern has turned more negative....86 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.

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