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| 3/01/99 Micron Technology (MU)
Points to watch: Last Thursday and Friday MU
broke below important support levels. It fell below its 21 day moving average
(69.15), 55 day moving average (62.85, first time below the 55 day since mid October,
average had provided support in February). Micron also broke below Gann 1x2 support
at 61.56 for the first time since October. Micron closed on Friday at 57.63, the 38%
retracement of its September-February rally. The stock held 3 important support
points on a test of them intraday Friday: 55.75 (the 50% retracement of the
9/95-7/96 decline from its all time high), 55.43 (Gann angle support, which has held on a
closing basis since mid October), and 54.63 ( point has acted as resistance on 2 occasions
and support on one since mid October). Technical indicators continue to weaken
and indicate the stock will likely continue to decline. Weekly OBV turned
down sharply in early February. Weekly MACD, stochastics, and RSI have given sell
signals. Daily stochastics and RSI are in downtrends. Sell, or short
Micron if it breaks below the 54.63 support level. Place a stop near the 1x2 angle
resistance at 61.56.
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