MU is in a strong long-term uptrend with bullish momentum; despite a wedge pattern and waning momentum near earnings, the technical setup supports a bullish outlook.

Micron is still quite strong compared to its sector group and the SMH Semiconductor ETF. Meanwhile, Micron is in the red here, having grown 536% in the past year. So, this is a very strong performance.

So, when we look at the micron more specifically , we see a wedge shape forming here. Both of our boundary lines are pointing upwards , but they are moving towards each other as we head towards the earnings report.

We have yet to fully close this gap near 1125 , or even get close to the all-time high near 1255. We can see that we were within a certain range between 900 and 1036 and we have now risen above this level.

Now, the old ceiling has become the new floor or foundation. So, it's definitely an interesting setup. We need to see if we break out and come back within this range , or if we rise up, fill the gap, and start a new uptrend.

Next we can look at our moving averages , our dark blue 5-day exponential moving average is near 1063, which is closest to the current price. We can see that our teal 21-day moving average, which represents one month, is currently around 1013.

The same pattern is seen with the RSI or momentum indicator, but it is slightly different. It is more triangular in shape , indicating that momentum is starting to wane , even though we have a long-term uptrend.

It is very normal for momentum to decrease before an earnings report. However, we are above the midline of 50, so the bullish trend is currently strong.

Meanwhile, our volume profile study shows that the heavy trading range within which the price has fluctuated the most is between 875 and 995. There's not much more to it than that.

We are in an area where transactions are low, especially when we start going above 1100.

thinking about our expected movement for earnings, our orange box is for the end of this week , which could be around 7.4%, more or less. However, for our current trading example, we are looking at November, our green box, which could be up or down by about 19.2%.

Which roughly matches the old maximum price that you see here.

So, a bullish view, plus one, November 20th, 11:30, 1,200, 1,270 call Butterfly 615 debit. So, that gives us this mountain-shaped risk profile, a bullish outlook, with 51 days left to maturity.

The maximum loss is 615, our paid debit will be our maximum loss on this risk- defined trade, if we hold it until expiration. The maximum profit, if we expire at exactly that 1,200 strike , would be 6385.

So, a lot of weird things could happen , but that's not the most likely outcome here. Our break- evens are 11:36:15 and 12:63:85. We have a 6.3 to 18.2% upside, our expected movement is about 19%.

It can go beyond that , but if this trade starts to go in your favor, you can simply close it. You don't have to hold it until expiration if you think your profitable trade could turn into a loss if it goes above the 12, 36 area.