Micron's $MU Q3 earnings report was better than expected, but that doesn't mean it was good. Here's a report from Motley Fool: Micron's Q3 results smash projectionsFlash memory specialist Micron Technology (NASDAQ:MU) is one of the most actively traded stocks tonight, plus one of the market's big gainers. It's not hard to see why. The company's Q3 2019 results, posted after market close, handily beat analyst estimates and calmed some investor nerves. For the quarter, Micron's revenue was $4.79 billion, a 39% year-over-year decline. The company's non-GAAP (adjusted) net profit saw a steeper fall, by 69% to just under $1.20 billion ($1.05 per share). However, since Micron is facing a host of challenges -- weak prices for the types of memory it produces, the relationship with pariah Chinese tech giant Huawei, among other headaches -- the market was expecting worse. On average, analysts were projecting a top line of $4.69 billion and only $0.79 in per-share adjusted net profit. Micron also proffered guidance for its current Q4. The company is anticipating revenue of $4.3 billion to $4.7 billion, with adjusted per-share earnings coming in at $0.38 to $0.52. The latter range is well below analyst estimates of $0.61. Regardless, investors seem happy the company has done better than many anticipated. Micron's shares are currently up almost 8% from their closing price earlier today. MU Daily Chart (click to enlarge) A Bullish Breakout:- The price action during the 6/26 session started with a gap and continued higher during the day. - Price had been consolidating between roughly $32 and $36.65, but closed the day above $37.Resistance:- However, we should note that the overall trend has been bearish since 2018 and things haven't really turned around for Micron.- The rally faces tough resistance in the $38-$40 area, which involves the 200-day simple moving average as well as a support/resistance pivot area. - Also, if the market is indeed still bearish on MU, the daily RSI should turn back down around 60, which would reflect maintenance of the recent bearish momentum.- I don't really trust this rally yet. A break above $40 and a subsequent hold above $36 could be a good sign, but until then I am staying away from MU.- I did have a small position entered at $33.30, but I already got out half of that at $37 and planning to exit the rest around $40.