Shares of Micron Technology, Inc. (NASDAQ:MU) were up by almost 2.5% Wednesday, but slammed into resistance at the $85 level and were backing off Thursday morning.
Resistance is a large concentration of sellers who are all offering their shares at the same price. At resistance levels, there is more supply than there is demand. This is why rallies pause or end when they reach them.
There is clear resistance for MU around the $85 level. After hitting it in early June, a selloff followed. If the stock can’t break through this resistance and move higher, there’s a good chance that another downtrend forms.
