Shares of Micron Technology, Inc. (NASDAQ:MU) are trading lower on Monday, and they could be about to break support.
Stocks that break support tend to trend lower. This is why Micron is our Stock of the Day.
Many people overcomplicate technical analysis. But it is simply the study of supply and demand.
If a stock is trending lower, it is because there isn't enough demand (buy orders) to absorb all of the supply (sell orders). As a result, investors and traders who wish to sell are forced to offer their shares at a discount to attract buyers.
This forces the stock into a downtrend.
Read Also: Markets Will Close For President Jimmy Carter's State Funeral: What You Need To Know
When a stock drops to a support level, the dynamic changes. There is more than enough demand to absorb all of the supply. Those who want to sell can do so without the fear of pushing the price lower.
As you can see on the chart, Micron has support at around $86.60. This level has been support since August.
Support levels can stay intact for an extended period of time due to seller's remorse. There are people who sold the stock while it was at support that regretted doing so when the price rallied soon after.
Some of them decide they made a mistake and vow to repurchase their shares if they can do so at the same price they were sold for. As a result, if the stock eventually reverses and drops back to their selling price, they place buy orders.
If there are enough of these buy orders, it will form support at the same price that had been support before.
If a stock trades and stays below the support level, traders say the support has been broken. This illustrates an important supply and demand dynamic.
This indicates that the traders and investors who established support with their buy orders have either completed their purchases or canceled their orders. In either case, they are no longer active in the market.
This could set the stage for a move lower and that may be about to happen with Micron. People who wish to sell may be forced once again to offer their shares at a discount to attract buyers.
This may force the stock into a new downtrend.
- Stanley Druckenmiller Loaded Up On Regional Banks Ahead Of Trump's Election Win
Photo by NPS_87 on Shutterstock
美光科技公司（纳斯达克股票代码：MU）的股价周一走低，可能即将突破支撑位。
突破支撑的股票往往会走低。这就是美光成为我们今日股票的原因。
许多人将技术分析过于复杂。但这只是对供需的研究。
如果股票走低，那是因为没有足够的需求（买入订单）来吸收所有供应（卖出订单）。结果，希望卖出的投资者和交易者被迫以折扣价出售股票以吸引买家。
这迫使该股进入下跌趋势。
另请阅读：吉米·卡特总统的国葬市场将关闭：你需要知道的
当股票跌至支撑位时，动态会发生变化。需求足以吸收所有供应。那些想要卖出的人可以这样做，而不必担心会压低价格。
正如您在图表上看到的那样，美光的支撑位在86.60美元左右。自8月份以来，这一水平一直是支撑。
由于卖家的悔恨，支撑水平可以在很长一段时间内保持不变。有些人在股票处于支撑位时抛售了股票，但不久之后价格上涨时却后悔这样做。
他们中的一些人认为自己犯了一个错误，并发誓如果可以以与出售价格相同的价格回购股票。结果，如果股票最终逆转并回跌至卖出价格，他们就会下买入订单。
如果有足够的这些买入订单，它将以与以前相同的支撑价格形成支撑。
如果股票交易并保持在支撑位以下，则交易者表示支撑已被打破。这说明了重要的供需动态。
这表明通过买入订单建立支持的交易者和投资者要么已经完成了购买，要么取消了订单。无论哪种情况，它们都不再活跃在市场上。
这可能为下跌奠定基础，而美光可能即将发生这种情况。想要卖出的人可能会被迫再次以折扣价出售股票以吸引买家。
这可能会迫使该股进入新的下跌趋势。
- 在特朗普大选获胜之前，斯坦利·德鲁肯米勒向地区银行充值
照片由 NPS_87 在 Shutterstock 上拍摄
