MU Knocks Covers Off The Ball In Earnings Report

Good Thursday Morning, MPTraders! September 26, 2024-- Pre-Market Update: Three sessions remain in September and until the end of Q3 2024... MU knocks the cover off the ball in its earnings report (see analysis below), lifting the semiconductors and stock indices this AM aided by a report that the Chinese Gov't is considering an injection of $142 billion into its major banks, according to Bloomberg. Economic Data: Weekly Jobless Claims and Final Estimate of Q2 GDP... Fed Chair Jay Powell's speech at 9:20 AM ET... CNBC Interviews: 8 AM ET Mega Hedge Fund Manager David Tepper... 9 AM ET CEO of MU (Micron)... Tomorrow: 8:30 AM ET PCE Inflation Report... 

Late on Monday afternoon, this is what we discussed about MU's technical setup ahead of its Earnings Report:

9/23/24 15:51 MU (Micron)-- Fellow member Sluck has asked for my thoughts on MU ahead of the company's earnings report on Wednesday. If my technical work is whispering anything to me about the likely reaction to the report, it is to expect a positive response to the news that has the potential to propel MU to the 105-111 target zone off of its unconfirmed (positively divergent) price low of 84.12 established on 9/1/24. My pattern work argues that MU ended its 47% correction off of the 6/20/24 ATH of 158.37 at 84.12, and is in the early stages of a recovery rally that has target zones of 105 to 111, and thereafter, at 123 to 127. Only a negative reaction to the earnings report that presses MU below 84.12 will invalidate the 105-111 target zone ahead of a press into the 75 area first, where my pattern work will be looking for renewed buying interest once again... last is 93.64...

Fast-forward to this AM, we see that MU spiked up as much as 17% in reaction to stronger-than-expected reports and forward guidance. My attached 4-Hour Chart shows that MU thrust to the upper boundary of my optimal upside bullish earnings reaction high-zone of 105 to 111, poised for additional strength on a sustained climb above 112.00/20. 

Should MU encounter some profit-taking, key support resides from 108 down to 105, where my nearest-term pattern work expects renewed buying interest to propel MU toward my intermediate-term Target Zone of 130-135, within a bull phase shown on my attached Big Picture Daily Chart ... Last in pre-market trading is 111.35...

NVDA is also higher by 2.3% this AM (see my attached NVDA Chart below) on the heels of the positive reaction to MU earnings and is pushing up against its June-September resistance line that, if (when?) hurdled, will project a run at the June 2024 ATH-zone from 137.50 to 141.60. Unless NVDA reverses and closes beneath 119.40, I will not be surprised to see NVDA attempt to chew through nearest resistance from 126 to 131 into the end of the quarter (Monday's close)... Last is 126.32...

Next Up: ES...