Micron is just screaming out to the value investor in me, and I've been waiting for their earnings call. Apparently a lot of others have, too, and I suspect that the news is no where near as dire as predicted with a resurging confidence in their future revenue growth potential from recent acquisitions of 3D development processes that they developed in conjunction with Intel from Intel thereby effectively eliminating the potentially most intimidating 800-lb gorilla competitor in the market for a Go-To Market strategy. With the recent price crash in semiconductors that's only recently gaining steam again with some good earnings in the semiconductors industry as well as soaring prices on AMD with the news that Google will be launching a cloud gaming service with their hardware alleviating the pressure off them from declining prices from cryptocurrency mining crashing out in the past couple of years.
That's enough of the engineer in me talking about the sector he works in, so its time to get to the technicals. MACD is rising and has been starting to break into a potential crossing of the histogram into safe territory, and I'm confident that the news in their earnings will be the nudge investors need to start buying back in. Desk traders are also going to start buying up a fair bit because they're still quite profitable and will continue to be, and they're in a magical P/E ratio of 3.3 that makes me salivate with the thought of possibly riding that train on up to somewhere closer to the industry average of 42.75. RSI is rising above 50, but careful investors may with to wait for additional confirmation or even until after the earnings call before going long depending on their risk profile. ADX is showing a falling negative price trend with the +DI and -DI contending, and the earnings call this week will cement the winner for a while to come. MU closed above the 20 day SMA with a strong upward momentum after bouncing off the bottom Bollinger Band in the last couple of weeks, and I anticipate it rallying on earnings with the long term 50 day SMA accelerating to cross over the 200 day SMA before the pre-Summer market lulls set in this year.
If you're like me, I always enjoy a good story about an American underdog that's beaten down in the media and underestimated pulling ahead of everyone's expectations, and that's a very real possibility here for the long term trend.
That's enough of the engineer in me talking about the sector he works in, so its time to get to the technicals. MACD is rising and has been starting to break into a potential crossing of the histogram into safe territory, and I'm confident that the news in their earnings will be the nudge investors need to start buying back in. Desk traders are also going to start buying up a fair bit because they're still quite profitable and will continue to be, and they're in a magical P/E ratio of 3.3 that makes me salivate with the thought of possibly riding that train on up to somewhere closer to the industry average of 42.75. RSI is rising above 50, but careful investors may with to wait for additional confirmation or even until after the earnings call before going long depending on their risk profile. ADX is showing a falling negative price trend with the +DI and -DI contending, and the earnings call this week will cement the winner for a while to come. MU closed above the 20 day SMA with a strong upward momentum after bouncing off the bottom Bollinger Band in the last couple of weeks, and I anticipate it rallying on earnings with the long term 50 day SMA accelerating to cross over the 200 day SMA before the pre-Summer market lulls set in this year.
If you're like me, I always enjoy a good story about an American underdog that's beaten down in the media and underestimated pulling ahead of everyone's expectations, and that's a very real possibility here for the long term trend.
Comment:
I had a feeling this earnings call would be a regime change moment for MU, but I didn't realize it would be such a strong reversal!