CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 69% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 69% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

Earnings Play Micron Technology

Article By: ,  Financial Analyst

Earnings Play: Micron Technology

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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