We last looked at Micron Technology (MU) on August 12 and recommended, "Avoid the long side of MU as the charts suggest further declines ahead." MU has weakened further and one Real Money subscriber is asking what the charts look like ahead of their earnings release scheduled for September 28. Let's look.
In this daily bar chart of MU, below, we can see that prices weakened in August and are still trading below the declining 50-day moving average line. The slope of the 200-day moving average line is beginning to crest and intersects above the market around $80. This line could act as resistance in the days ahead.
The On-Balance-Volume (OBV) line shows some weakness in August but its next move is unclear. The Moving Average Convergence Divergence (MACD) oscillator has crossed to the upside from below the zero line for a cover shorts buy signal.