Market Overview

Technician: Micron Could Rally Another 25%

Technician: Micron Could Rally Another 25%

Chip stocks are on pace to record their best year since 2009, which has many investors wondering if now is the time to lock in some profits in stocks such as Micron Technology, Inc. (NASDAQ: MU)

The Expert

Rich Ross, a technical expert at Evercore ISI, and Chantico Global CEO Gina Sanchez.

The Strategy

One of the biggest themes throughout 2017 is the strength in semiconductors and technology stocks, and Micron happens to be the "strongest stock within the group," Ross said during a recent CNBC "Trading Nation" segment. Micron's strength, which dates to mid-2016, is showing no signs of "even coming close to exhaustion."

For the most part, Micron's stock has traded above its 150-day moving average since May 2016. Taking a look back since 2013, the chart shows Micron's stock unsuccessfully tried to break above around $37 per share. But recently it managed to eclipse that resistance level and trade at new all-time highs.

"We think it's going to [$60] here by virtue of that multiyear base breakout," Ross said. 

Chantico Global's Sanchez said the case for continued upside in Micron can be made from a fundamental point of view. 

Micron is one of the few companies at the forefront of some of the hottest technology groups, including virtual reality, artificial intelligence, smart tech, smart manufacturing and smart automotive, she said. 

Price Action

Shares of Micron hit a new 52-week high of $49.56 and are now up 125 percent throughout 2017 and more than 800 percent over the past five years.

Related Links:

Micron: A Strong Growth Stock Powering Self-Driving Cars

Why Micron Should Consider Buying Pure Storage

Photo courtesy of Micron Technology. 


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