Micron Technology Inc. (MU) rose about 2.5% on Wednesday as traders look to re-test trend line resistance at around $30.00 per share. While the stock remains well off its 2014 highs, a breakout from its upcoming resistance could market a continuation of the rally.

After rebounding from trend line support, the index reached its R1 resistance at $28.99 that lies just below its trend line resistance. Traders should watch for a breakout from trend line resistance and psychologically-important $30.00 levels to fresh highs. If this occurs on high volume, the resistance level could turn into an important support level that could provide the basis for a long-term move higher toward its 2014 highs.

The relative strength index (RSI) has been steadily rising, but remains at a relatively neutral 58.40 level, while the moving average convergence-divergence (MACD) appears on the verge of a bullish crossover at current levels.

On a fundamental level, the company may be running out of catalysts for the stock. Goldman Sachs analysts recently downgraded the stock from Buy to Neutral citing DRAM pricing concerns and a hefty bump in analyst estimates for earnings over the next two years. Still, the analyst maintained a price target of $32.00 that remains just above key resistance levels and many other investors remain bullish on the firm given its low relative valuation.

Traders should watch for a breakout from upper trend line resistance levels on high volume as a potential long opportunity and consider locking in profits if the stock fails to break out.

Charts courtesy of StockCharts.com. Author holds no position in the stock(s) mentioned except through passively-managed index funds.