NEW BULLISH Plays
Micron Tech. - MU - close: 23.45 change: +0.74
Stop Loss: 21.95
Current Gain/Loss: unopened
Entry on January -- at $--.--
Listed on January 30, 2014
Time Frame: 6 to 8 weeks
Average Daily Volume = 37 million
New Positions: Yes, see below
Why We Like It:
MU is in the technology sector. The company makes semiconductors for the memory chip industry, most notably their DRAM products. MU also makes NAND and NOR flash memory products. The stock popped higher on January 8th following its earnings report released the night before. The results were much better than Wall Street anticipated. Since its post-earnings pop shares of MU have struggled to build on that move. Granted the market has not been very cooperative. MU has spent the last three weeks consolidating gains inside the $22.00-24.00 zone.
MU displayed relative strength today and looks poised for a bullish breakout from this trading range.
If you look closely there appears to be short-term resistance at the $23.80 mark. I am suggesting a trigger to open bullish positions at $23.85. If triggered our multi-week target is $28.50. More conservative investors may want to wait for MU to close above $24.00 or even rally above its January high of $24.50 before initiating positions.
Investors will want to take note that MU will host an analyst conference on Friday, Feb. 7th.
Trigger @ 23.85
Suggested Position: buy MU stock @ (trigger)
- (or for more adventurous traders, try this option) -
Buy the MAR $25 call (MU1422C25) current ask $1.03