Playing Earnings News on Micron Technology
12/23/2008 12:01 am EST
Micron Technology (MU) will be reporting their quarterly financial results after the market closes today. The general consensus is that the company will report a larger loss than the previous year’s same quarter, which was a loss of 34 cents per share.
However, it recently reported news of a new product developed in cooperation with Sun Microsystems and the stock has run up closer to its 50-day moving average.
When their loss comes out, if it breaks above the 50-day moving average, it may be an opportunity to take a long position. However, if it meets resistance at that same level, it’s probably time to short the overbought position that seems to show itself in the chart above.