We’re Checking on Micron Technology Ahead of Earnings

Memory and storage maker Micron Technology (MU) reports their latest quarterly earnings figures after the close of trading Tuesday. My last review of MU was on December 19 before the last earnings release. Let’s see how things look today.

In this daily bar chart of MU, below, I can see that prices have built a potential base pattern since June. Dips towards $50 have been bought in September and December. A higher low seems to have been made in March.. Prices have crossed the 50-day moving average line several times. Now MU trades just slightly above the 50-day line and above the still declining 200-day line. The trading volume histogram is not suggesting that there is increased interest in MU from investors.

The On-Balance-Volume (OBV) line has actually declined the past 12 months telling me that sellers of MU are more aggressive than buyers. The Moving Average Convergence Divergence (MACD) oscillator is slightly above the zero line after oscillating around it the past year. This tells me that the trend strength is mediocre. 

In this weekly Japanese candlestick chart of MU, below, I see a mixed picture. Prices are acting like they are based with four lows on the chart. MU is trading above the 40-week moving average line. The trading volume has declined the past year or so.

The weekly OBV line has been in a downward path since early 2021. The MACD oscillator has been improving since July and is just slightly below the zero line.

In this daily Point and Figure chart of MU, below, I can see a potential upside price target in the $77 area but a trade at $65 is needed to refresh the upside move and generate a breakout.

In this weekly Point and Figure chart of MU, below, I see the same $77 upside price target but in this chart a trade at $66 is needed for an upside breakout.

Bottom line strategy: I have no special knowledge of what MU is going to report to shareholders and fundamental analysts this evening. The price action says we are looking at a bottom pattern and we should be buyers of MU. The volume pattern and the OBV line suggest we should not get too excited just yet.