Micron’s Charts Are Mixed to Bearish Ahead of Earnings

Chip maker Micron Technology (MU) is expected to report their latest earnings on Tuesday after the close of trading. We looked at the chart of MU earlier this month on March 16 and wrote, “In the short-run, trading in MU could remain unsettled. The key area I am watching is the October low – hopefully prices can rebase above it.”  

Let’s see how the charts and indicators look today. 

In this updated daily bar chart of MU, below, we can see that prices have not changed much since the 16th and they continue to trade below the 200-day moving average line. Trading does not seem to show us anything to note but the On-Balance-Volume (OBV) line has inched lower. The Moving Average Convergence Divergence (MACD) oscillator shows us a “wimpy” response. 

In this weekly Japanese candlestick chart of MU, below, we do not find a bottom reversal pattern. The weekly OBV line and the MACD oscillator are pointed down.  

In this daily Point and Figure chart of MU, below, we can see a potential upside price target of $105 but a trade at $75 is likely to weaken the picture. 

In this weekly Point and Figure chart of MU, below, we see a bearish price target in the $54 area. 

Bottom line strategy: These four charts are mixed. In have no special knowledge of what MU is going to report for earnings. In the short-run I would avoid the long side of MU even though the daily Point and Figure chart is bullish. Longer-term the risk looks like further declines.