The following chart shows an interesting setup approaching tomorrow (25th June 2015) for Micron’s earnings release (ER).
This is not a complete analysis and anybody making a decision to bet on this, going long or short with real money. does so entirely at their own risk.
Ignore most of the wavy lines. The important things are price movements and contrasting the current situation with the historical.
Whilst a majority of analysts have high bullish expectations of Micron, price is at a critical point of support. Analysts could well all be wrong. No one should rely heavily on analyst reports – they are simply indicative and not the major part of any analysis.
If one were to rely simply on the GMMA indicator – all the multiple coloured lines – then the prediction is that price will drop like a rock. However, GMMA does not ‘know’ and cannot see into the minds of short term traders. Institutional big investors are slow to react – as per slow EMAs on the GMMA.
Earnings release plays are about short term traders looking for a quick ‘kill’ i.e. the fast EMAs. Short term traders can decide quite independently, to put a bounce up or down based on their expectations – even if totally in disagreement with the big boys. The big boys may be right in the longer term. But the shorter term traders don’t care about that. GMMA is more about trend following strategy, whilst ER plays are simply about looking for a temporary bounce or crash. It’s a so-called aggressive strategy to snatch some cash and run like a thief in thuh night!