MU rockets $2.37 (4.82%) after posting strong earnings

Micron Technology Inc. (MU) Technical Analysis Report for Jun 30, 2020 | by Techniquant Editorial Team


MU surges $2.37 (4.82%) after posting strong earnings
MU rallies 4.82% on high volume
MU breaks back above 20-day moving average
MU closes below its opening price unable to hold early session gains
MU unable to break through key resistance level


Moving higher for the 2nd day in a row, MU ended the month 7.53% higher at 51.52 after surging $2.37 (4.82%) today on high volume, strongly outperforming the Nasdaq 100 (1.96%) following Monday's earnings report. This is the biggest single-day gain in over three weeks. The last time we've seen such an unusually strong single-day gain on May 27th, MU actually lost -6.03% on the following trading day. Trading $0.68 higher after the open, Micron Technology was unable to hold its gains as the bears took control ending the day below its opening price. Ending the day with an indecisive close, neither buyers nor sellers were able to gain control during the session.

Daily Candlestick Chart (MU as at Jun 30, 2020):

Daily technical analysis candlestick chart for Micron Technology Inc. (MU) as at Jun 30, 2020

MU reported earnings of $0.82 per share after Monday's market close. With analysts having expected an EPS of $0.78, Micron Technology Inc. surpassed market expectations by 5.1%. The company's last earnings report was released on March 25, 2020, when Micron Technology Inc. reported earnings of $0.45 per share surpassing market expectations by 18.4%.

Tuesday's trading range has been $1.49 (2.88%), that's below the last trading month's daily average range of $1.93. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently lower than usual for MU.

One bearish candlestick pattern matches today's price action, the Bearish Spinning Top.

The stock managed to close back above the 20-day moving average at 50.53 for the first time since June 22nd. Unable to break through the key technical resistance level at 52.23 (R1), the share closed below it after spiking up to 52.46 earlier during the day. The failure to close above the resistance might increase that levels importance going forward.

Although still in a long-term downtrend, the short and medium-term trends both turned bullish already.

As prices are trading close to June's high at 54.82, upside momentum could accelerate should the market mark new highs for the month.

Among the 10 market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Gap Up" stand out. Its common bullish interpretation has been confirmed for Micron Technology. Out of 173 times, MU closed higher 63.01% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the long side has been after 10 trading days, showing a win rate of 60.69% with an average market move of 2.39%.

Market Conditions for MU as at Jun 30, 2020

Loading Market Conditions for MU (Micron Technology Inc.)...
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