Earnings Play: Micron Technology
Jason Lubin September 30, 2020 1:10 AM
Look for continuation of the short-term uptrend.
Today, after market, Micron Technology (MU) is anticipated to report fourth quarter EPS of $0.99 compared to $0.56 a year ago on revenue of approximately $5.9 billion vs. $4.9 billion last year. The company manufactures memory chips and its current analyst consensus rating is 27 buys, 6 holds and 1 sell, according to Bloomberg.
Looking at a daily chart, Micron's stock price appears to be rising within a short-term ascending broadening wedge pattern that began to form in mid-August. The RSI is holding on top of a bullish trendline and currently sitting just above 60. Since a broadening wedge is usually considered to be a continuation pattern and price is in a short-term uptrend, the bias is for an upside breakout. Price will likely advance towards the 54.75 resistance level and break through it. If price gets above 54.75 and the upper trendline it will likely continue to grind towards the 2020 high of roughly 61.25. On the other hand, if price breaks out to the downside of the lower trendline it would be a bearish signal. If this occurs then price will have also broken below its 47.75 support level, which price has been holding above for the last 12 trading days. If price cannot find support at the lower trendline then this could clear a path for price to drop back to the 42.25 support level.
Source: GAIN Capital, TradingView
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