Should You Buy Micron Technology Ahead of Earnings?

The chipmaker reports its latest quarterly results this week.

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Jun 27, 2022 | 12:20 PM EDT

Stocks quotes in this article: MU

Micron Technology ( MU) made a high back in December and then has traded lower into June. The shares are trading below the declining 50-day and declining 200-day moving average lines ahead of their upcoming earnings report this Thursday.

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.

The On-Balance-Volume (OBV) line has made only a slight new low in June. The Moving Average Convergence Divergence (MACD) oscillator is bearish but narrowing towards a potential cover shorts buy signal. 

 

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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