After the big correction in September, equity investors entered in October with a great deal of uncertainty as the pandemic increased its outbreaks around the world and the election clock ticked. So far, there are no catalysts on the market to start shopping again. Indices continue to fall as the NASDAQ is close to 7.32% down, the Dow fell 4.4% and the S & P500 C 5.77%.
Chipmaker Micron Technology (MU) will report sales for Q4 on Tuesday after the market closes. The company is forecast to make $ 0.98 earnings per share on $ 5.89 billion in sales. The largest US maker of computer chips said demand is falling and getting worse, and the company is unlikely to meet its sales forecasts. The good thing is that the company has widespread services for all types of computers, from laptops to servers and also memory for smartphones. MU is a competitor of Samsung Electronics (SSNLF) in the production of dynamic memory access and portable memory.
The demand situation is still very uncertain and Micron performed worse than its competitors, falling by about 9%. However, this puts it at a good price for long-term ownership. When placing the FIBO on the short-term movement, we can find out how far it is possible to adjust the price. It is strongly supported by 200MA and 50MA and with price action, breakthrough and confirmation we can consider entering the market.
Junior Trader Kameliya Ivanova