Let’s check out the charts and indicators.
In the daily bar chart of MU, below, we can see that the shares broke support around $65 and plunged lower this month. Trading volume has been steady the past couple of months and unlike some other stocks where a new low price prompted heavy trading volume and “throw in the towel-like” trading volume we do not see that here with MU.
In this weekly Japanese candlestick chart of MU, below, we can see that prices made a large top pattern the past two years with twin peaks in the $95-$100 area. Prices are trading below the declining 40-week moving average line.
The weekly OBV line made a low in April and again in June. The MACD oscillator is bearish and pointed lower.
In this daily Point and Figure chart of MU, below, we can see a potential upside price target in the $67 area.
In this weekly Point and Figure chart of MU, below, we can see a downside price target in the $32 area.
Bottom-line strategy: I have now special knowledge of what MU will report to shareholders and sell-side analysts on Thursday, but the charts are not giving us strong reasons to purchase shares ahead of earnings.
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Don’t Shout ‘V’ for Victory, Yet
Even after last week’s move higher and Monday’s narrow range of movement, we can say it’s going to be difficult to produce a ‘V’-shaped setup like we had at the pandemic low in 2020.
Source: https://realmoney.thestreet.com/investing/stocks/should-you-buy-micron-technology-ahead-of-earnings–16037849?puc=yahoo&cm_ven=YAHOO&yptr=yahoo