Micron Technology, Inc. (NASDAQ:MU), a chipmaker company, traded in a contracted range of $26.50-$28.00 for the fourth consecutive session. The contraction in volatility suggests an impending expansion very soon in both price and volatility, even in these last two days of the week. The volume of 22 million against the daily average of 25 million is pretty normal for a rangebound phase too, providing more strength to the speculation of an immediate trending move.

Volume Price Trend Indicator (VPT) of MU

Earlier this week, Micron Technology, Inc. (NASDAQ:MU) had a ”buy” rating from the analysts of the sell-side firm Angus, with a price target of $41, a new 52-week high if it takes place. The positive sentiment comes from the solid 2QFY15 result in a challenging industrial environment.

The revenue of Micron Technology, Inc. (NASDAQ:MU) grew by 1% to $4.17 billion on a y-o-y basis and considering the intense pricing environment and the reduced financial outlook for the computer space by Intel Corporation (NASDAQ:INTC), a drop of only 5% in the EPS to 81 cents looked commendable.

The company is excited about the product transitions and the progress on technology. It has entered a joint venture with Intel Corporation (NASDAQ:INTC) for building 3D chips and the sampling availability of the jointly developed 3D NAND technology has already been announced. This technology is expected to lower the NAND flash cost along with making significant improvements in density. Both the companies are very hopeful regarding this tech which should allow for both increased endurance and performance compared to previous generation 2D solutions.

Technically the stock is in a downtrend in the short and medium term time frames. The last drop from $33 to $26 is perfectly channeled and unless the bulls can take the price quickly above $28, the bears can push the price lower towards $25 or even $24. The equality of the last two intermediate drops increases the bullish chances in the short term.