Is now a good time to buy post-earnings?

Taking a look at Micron after it reported earnings yesterday, the reaction saw the stock dive around 8% initially. It is currently down over 6% in the pre-market session. Its share price now sits around $133.33 a share, so the question is, is this a good time to buy?

From a technical perspective, we can see it has fallen around 19% from its all-time high to yesterday's low post-earnings. Looking at the history of the stock, when it experienced a similar pullback in April, it managed to recover. The April pullback was also approximately 19% peak to trough. However, the key takeaway here creating some concern is the momentum indicators. Back in April, the MACD selling volume began declining and the MACD line started to bottom out. So far, there aren’t any similar signs here from the MACD as it has only just turned negative, but the stock has already fallen a similar amount in terms of valuation. Therefore, from a momentum outlook, further declines in the near term are possible. On the other hand, the RSI is at the same level as it would back in April, potentially providing some stability in the near term but the MACD and RSI are both lagging indicators and cannot be used alone to determine future prices. Yes – Micron beat its earnings, but the guidance provided was underwhelming, this may weigh on investor sentiment. The key support levels are now yesterday’s low of $127.63 followed by $121.03. The resistance in focus will be $134.95, a move and close above may regain some momentum to allow the stock to consolidate between $130-$140.