Earnings Play: Micron Technology
Jason Lubin June 26, 2020 11:10 AM
Micron Technology's 3Q earnings are expected on Monday.
On Monday, after market, Micron Technology (MU) is anticipated to release third quarter EPS of $0.74 compared to $1.05 a year ago on revenue of approximately $5.3B vs. $4.8B last year. The company manufactures memory chips and on June 13th, United Microelectronics, one of Taiwan's largest wafer operators was ordered to pay a NT$100M (USD$3.36M) fine by a district court in central Taiwan after the company and three of its employees were found guilty of stealing trade secrets from Micron Technology, according to Focus Taiwan CNA English News.
From a chartist's point of view, on a daily chart, Micron Technology's stock price recently slipped below the lower trend line of an ascending wedge pattern that price has been rising within since mid-March. The RSI has also fallen below a bullish trend line and is currently sitting just below 50, a bearish signal. Price is expected to hold under the lower trend line and break the $47.00 support level. If support is broken then that will clear a path towards the $43.00 level. If price is able to hold above the $47.00 support level then price could regain momentum and spike upwards back into the ascending wedge pattern. If that were to occur we would expect price to continue the up trend and head for a retest of the $53.00 resistance.
Source: GAIN Capital, TradingView
Disclaimer: The information on this web site is not targeted at the general public of any particular country. It is not intended for distribution to residents in any country where such distribution or use would contravene any local law or regulatory requirement. The information and opinions in this report are for general information use only and are not intended as an offer or solicitation with respect to the purchase or sale of any currency or CFD contract. All opinions and information contained in this report are subject to change without notice. This report has been prepared without regard to the specific investment objectives, financial situation and needs of any particular recipient. Any references to historical price movements or levels is informational based on our analysis and we do not represent or warranty that any such movements or levels are likely to reoccur in the future. While the information contained herein was obtained from sources believed to be reliable, author does not guarantee its accuracy or completeness, nor does author assume any liability for any direct, indirect or consequential loss that may result from the reliance by any person upon any such information or opinions.
Futures, Options on Futures, Foreign Exchange and other leveraged products involves significant risk of loss and is not suitable for all investors. Losses can exceed your deposits. Increasing leverage increases risk. Spot Gold and Silver contracts are not subject to regulation under the U.S. Commodity Exchange Act. Contracts for Difference (CFDs) are not available for US residents. Before deciding to trade forex and commodity futures, you should carefully consider your financial objectives, level of experience and risk appetite. Any opinions, news, research, analyses, prices or other information contained herein is intended as general information about the subject matter covered and is provided with the understanding that we do not provide any investment, legal, or tax advice. You should consult with appropriate counsel or other advisors on all investment, legal, or tax matters. References to Forex.com or GAIN Capital refer to GAIN Capital Holdings Inc. and its subsidiaries. Please read Characteristics and Risks of Standardized Options.