Micron Technology, Inc. (NASDAQ:MU) stock fell about 3% in Thursday’s premarket session as rising bond yields, elevated oil prices and broader economic uncertainty pressured technology stocks. Nasdaq futures fell 1.29%, while S&P 500 futures declined 0.61%.
Micron remains in a strong long-term uptrend despite Thursday’s premarket decline. However, weaker Nasdaq futures could make it harder for the stock to break through nearby resistance.
The stock is also digesting its summer pullback after reaching a swing high in June and a low in July. Investors are now watching whether buyers defend key moving averages.
Technical Analysis
Micron trades about 3.9% above its 20-day simple moving average of $958.23. It is also 6.7% above its 50-day SMA of $933.29 and 62.1% above its 200-day SMA of $614.35.
The moving averages remain in a bullish formation. The 20-day SMA is above the 50-day SMA, while the 50-day SMA remains above the 200-day SMA.
Momentum also looks constructive. The MACD is above its signal line, while the histogram is positive. That suggests selling pressure has eased and buyers are regaining some control.
Resistance sits near $1,012. A break above that level could strengthen the rebound. Support stands near $887.50. A move below that level would weaken the technical setup.
Micron has gained 634.12% over the past 52 weeks. The stock reached a 52-week high of $1,255 in June and a low of $131.56.
See More: Top Value Stocks
Analyst Outlook
Micron carries a Buy consensus rating and an average price forecast of $1,521.74.
Mizuho maintained an Outperform rating but lowered its price forecast to $1,300 on Aug. 25. New Street Research upgraded Micron to Buy with a $1,250 price forecast on Aug. 14. Citigroup maintained a Buy rating but lowered its price forecast to $1,150 on Aug. 7.
Benzinga Edge Rankings
Micron scores 99.58 for Momentum, 96.83 for Quality and 93.54 for Growth. However, its Value score stands at 22.09.
The scores point to a momentum-driven growth stock with strong quality characteristics. However, its weaker value score could leave shares more exposed if growth expectations cool.
Top ETF Exposure
The Invesco S&P 500 Momentum ETF (NYSE:SPMO) has a 9.81% weighting in Micron. The State Street SPDR NYSE Technology ETF (NYSE:XNTK) has an 8.14% weighting, while the SMART Earnings Growth 30 ETF (NYSE:SGRT) has a 9.67% weighting.
Heavy ETF exposure can amplify stock moves when large fund inflows or outflows trigger additional buying or selling.
Price Action
MU Stock Price Activity: Micron Technology shares were trading at $995.70 during premarket trading on Thursday, according to Benzinga Pro data.
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