MU earnings reaction in 30s may cause drop to 20-day MA; expected to be bought and rally from there.

And now next week, of course, we have Micron's earnings results, and that will be very important for the stock. Last quarter, if you recall, they announced fantastic figures; they far exceeded expectations.

Yet the stock did nothing but decline for the next month and a half . Then it moved sideways for a month, and now buyers are in control.

Now, if we see a negative reaction to Micron's earnings in the 30s, we could drop to that ascending 20-day moving average , and I think it will be bought and then take off. Therefore, simply breaking this level downwards does not necessarily mean a shift to a downward trajectory.

A break below this high bottom could mean we might drop to the 20 and 50 levels. Traders are kicking out for a day or two based on a potential negative reaction towards Micron, and then we see the real move emerge.

So don't be alarmed by the initial reaction unless, of course, you are holding a huge position; just be aware that the catalyst is coming in the thirties, I think, after the close.