Why This Chip Maker Looks Ready To Skyrocket

Depending on how you like the market in light of the surge that took place after CPI came in at 3% vs the expected 3.1%, our latest trade idea on Micron (MU) could be setting up to be a big winner. After climbing from the upper 40s to now well into the 60s, MU may have just resumed its climb after a brief pullback from the high of 74 it put back in a couple weeks ago.

The pullback occurred in a pretty well-defined downward wedge that could almost be seen as a bull flag if you’re using the higher timeframes, a pattern that usually favors the bulls. If this is the case, MU looks ready to make another run at that 70 level.

As the market surges on the back of a bullish CPI report, the rally looks to have gotten that second leg we spoke about here yesterday. Seeing as how we are in a bull market and still in an up-trending market, the possibilities of this being the case are more likely. We are never ones to fight the trend and the trend MU has been putting in, as well as the market overall, points to this trade being higher probability.

However, finding the right entry is key. Any pullback to around 64-66 with a bounce upward should be viewed as a good entry point if you were swinging calls for a period longer than two weeks or so. Be sure to have this trade mapped out on your trading platform so you don’t miss a move that could pay very well for those who exercised patience.

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