Micron – Ready for Breakout After Earnings?
Micron ( 
MU ) is handling the potential double bottom formation well, with a key breakout level approaching at $109. I wouldn’t jump in until it crosses this level, as I want to see the stock approaching its 150-day moving average, currently around $112.19. Once we see that breakout, I’d expect a solid trade with a target around $136.50. While I’m not in Micron for the long term yet, I believe this setup could make for a strong short-term trade.
Technicals are lining up: RSI is bouncing back from oversold, volume is increasing, and a bullish engulfing candle just appeared. All signs point toward an upcoming breakout, but it will be key to see if the earnings report can provide the final push.
Earnings Expectations:
Revenue and Earnings Beat: For the stock to break out, Micron needs to deliver a revenue beat of 2% or more. This would signal they are navigating the current semiconductor environment effectively.
Raised Guidance: Investors will want to see next-quarter guidance raised by at least 3%, especially in AI, cloud, and memory demand sectors.
Inventory Management: The market will look for signs of reduced inventory and stable or improving pricing for DRAM and NAND chips.
AI Partnerships: New developments or partnerships in AI could serve as another catalyst for growth.
The market is waiting for a clear sign of recovery. A beat on earnings and a strong forward outlook could be just the push Micron needs to break through the $109 resistance and begin a new uptrend.
What do you think? Will Micron’s earnings be the catalyst we’ve been waiting for, or is the stock still too risky at these levels?
MU ) is handling the potential double bottom formation well, with a key breakout level approaching at $109. I wouldn’t jump in until it crosses this level, as I want to see the stock approaching its 150-day moving average, currently around $112.19. Once we see that breakout, I’d expect a solid trade with a target around $136.50. While I’m not in Micron for the long term yet, I believe this setup could make for a strong short-term trade.Technicals are lining up: RSI is bouncing back from oversold, volume is increasing, and a bullish engulfing candle just appeared. All signs point toward an upcoming breakout, but it will be key to see if the earnings report can provide the final push.
Earnings Expectations:
Revenue and Earnings Beat: For the stock to break out, Micron needs to deliver a revenue beat of 2% or more. This would signal they are navigating the current semiconductor environment effectively.
Raised Guidance: Investors will want to see next-quarter guidance raised by at least 3%, especially in AI, cloud, and memory demand sectors.
Inventory Management: The market will look for signs of reduced inventory and stable or improving pricing for DRAM and NAND chips.
AI Partnerships: New developments or partnerships in AI could serve as another catalyst for growth.
The market is waiting for a clear sign of recovery. A beat on earnings and a strong forward outlook could be just the push Micron needs to break through the $109 resistance and begin a new uptrend.
What do you think? Will Micron’s earnings be the catalyst we’ve been waiting for, or is the stock still too risky at these levels?
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.