Micron Technology (MU) is in focus as it approaches earnings, with its stock already up 270% year-to-date. Despite trading in a wide range since May, analysts see potential for a breakout past $1250, targeting the $1500 level, a roughly 15% upside.
Nike (NKE), on the other hand, is in a technical downtrend but shows signs of a potential short-term rally. With support at $35 and potential upside targets around $39.39 and $41.76, traders are looking for a profitable relief rally ahead of its earnings report.
READ MORE FROM CNBC
As traders gear up for Micron's highly anticipated earnings report, the semiconductor giant's impressive year-to-date gains of 270% are under the spotlight. However, the stock has been trading within a wide, neutral range since May, leaving many wondering if an earnings beat can break it out of this consolidation. While the risk/reward might be slightly unfavorable ahead of Wednesday's after-hours announcement, the bulls appear to be regaining momentum. Mixed momentum indicators, with the MACD trending higher, suggest potential upside. Key support levels to watch include the 50-day moving average and recent AVWAP, coinciding with all-time highs and summer lows, in the $930-$960 range. A break above the $1250 ceiling could open the door to the $1500 area, representing a potential 15% upside.
Meanwhile, Nike presents a different technical picture. The athletic apparel giant, reporting Thursday after the market close, is currently in a downtrend, with shares consistently making lower lows since their 2021 peak. Down approximately 43% year-to-date in 2026, investors are eagerly awaiting a turnaround. Despite the bearish trend, there are encouraging technical signals heading into this quarter's earnings. A near-term bullish divergence in the stock's RSI and a signal from the stochastic indicator are creating solid risk/reward setups. The $35 level is a critical support to hold, with potential rallies targeting the 50-day moving average at $39.39 and the declining AVWAP at $41.76. While a sustained turnaround for Nike is not yet guaranteed, the current technical environment suggests a potentially profitable relief rally is on the horizon.
