Micron Technology Drops 3.53% Amid Bearish Technical Signals

Micron Technology (MU) experienced a notable decline of 3.53% in the latest session, closing at $120.87 after trading between $119.44 and $123.38, reflecting heightened selling pressure amid broader technical signals.
Candlestick Theory
Recent price action for Micron reveals emerging bearish signals. The August 12–14 sessions formed a "bearish engulfing" pattern (peaking at $127.75) followed by three consecutive lower closes, confirming rejection near the $128 resistance. The August 15 close near the session low ($119.44–$123.38) reinforces this weakness. Key support lies at the July 29 swing low ($111.96), while resistance holds firmly at $128, validated by multiple failed breakouts in late June and early August.
Moving Average Theory
The 50-day moving average (MA) has crossed below the 100-day MA, signaling deteriorating short-term momentum. Current prices ($120.87) hover below the 50-day MA (~$115) and 100-day MA (~$112), but remain above the 200-day MA (~$95). This configuration suggests a neutral-to-bearish intermediate trend, though the sustained 200-day MA uptrend implies longer-term bullish support. A decisive break below the 200-day MA would invalidate this optimism.
MACD & KDJ Indicators
The MACD histogram shows widening negative momentum, with the signal line diverging below the MACD line since early August. Simultaneously, the KDJ oscillator registers an overbought peak (K-value >80) on August 8, followed by a sharp reversal below 50, indicating waning upward thrust. Both indicators align in signaling near-term bearish pressure, though oversold KDJ hooks (e.g., late July) could precede tactical rebounds.
Bollinger Bands
Bollinger Bands contracted sharply in mid-July (bandwidth narrowing 30%), foreshadowing the August volatility expansion. Prices recently pierced the lower band ($118 on August 15), hinting at oversold conditions. However, the absence of a bullish reversal candle and continued closes below the 20-day midline ($122) suggest bearish dominance. Band expansion is likely to persist if selling pressure accelerates.
Volume-Price Relationship
The August 11 rally to $127.28 occurred on elevated volume (35M shares vs. 20M average), but subsequent declines saw even higher volume (25.9M shares on August 12), confirming distribution. The August 15 sell-off registered 18.95M shares, aligning with the downtrend but lacking climactic volume. This divergence may suggest further downside before capitulation.
Relative Strength Index (RSI)
The 14-day RSI currently reads 42, retreating from overbought territory (75 on August 8). While not yet oversold (<30), the swift descent from elevated levels signals weakening momentum. Historical RSI troughs near 30 (late May, early July) coincided with rallies, but the current absence of bullish reversal patterns tempers recovery expectations.
Fibonacci Retracement
Applying Fibonacci to the March 2025 high ($130) and July low ($94.46) reveals key levels. The 61.8% retracement ($118) was breached on August 15, exposing the 50% level ($112) as next support. Resistance clusters at the 78.6% level ($125.50), aligning with the August 14 high ($125.74). A sustained break below $118 would open the door to a full retracement toward $105.
Confluence and Divergences
Confluence of bearish signals appears at the $128 resistance, reinforced by MACD decay, KDJ reversal, and volume-backed rejection. A notable divergence exists between price action (lower highs since August 12) and volume, which has not yet confirmed panic selling. This may indicate unresolved downward pressure.
In summary, Micron Technology faces technical headwinds with bearish momentum signals, volume distribution, and failed resistance tests. Near-term risks skew downward toward $112, though oversold readings in volatility and momentum oscillators may fuel tactical bounces. Probabilistically, a sustained break below $118 would validate deeper corrective phases, while recovery above $125.50 is required to resurrect bullish sentiment.