Semiconductor Stock Could Bounce Towards Fresh Record

An unwinding of pessimism in the options pits could push MU higher still

Digital Content Manager
Jan 20, 2022 at 2:47 PM
facebook X logo linkedin


Chip name Micron Technology, Inc. (NASDAQ:MU) was last seen down 2.4% to trade at $87.84, after the company said Covid-19 shutdowns in China could lead to production delays, and noted that government restrictions "may be increasingly difficult to mitigate.” The equity is fresh off a Jan. 5, record high of $98.45, though, adding 29.3% in the last three months. Another reason why investors may not want to look away just yet is that MU is flashing a historically bullish signal, which could push it to fresh all-time highs.
  
More specifically, Micron Technology stock's dip has put it within one standard deviation of its 40-day moving average, which has helped MU surge higher in the past. According to a study conducted by Schaeffer's Senior Quantitative Analyst Rocky White, the stock has seen seven similar signals in the last three years. One month after each signal, the security was higher 86% of the time, averaging a 13.3% return in that period. From its current perch, a move of the same magnitude would put MU at a fresh record of $100.61.

MU 40 Day 

An unwinding of pessimism in the options pits could push MU even higher. This is per the stock's Schaeffer's put/call open interest ratio (SOIR) of 1.16, which sits in the 93rd percentile of its annual range. This indicates near-term put open interest outweighs call open interest by a wider-than-usual margin right now.

 

Target Effortless Triple-Digit Gains Every Sunday Evening For Life!

This is your chance to triple your profit potential on Sunday evenings, without spending all your free time watching the market.

On Sundays, as a Weekend Plus subscriber, you’ll get up to 6 trades every Sunday, each targeting gains of 200% or more.

Start targeting gains like the ones our subscribers have seen recently, including:

213.3% GAIN on AutoNation calls
100.0% GAIN on Monster Beverage calls
100.4% GAIN on Walgreens Boots Alliance puts
100.4% GAIN on ON Semiconductor calls
257.7% GAIN on Dell calls

101.0% GAIN on Apollo Global Management calls
103.6% GAIN on JP Morgan  Chase calls
105.3% GAIN on DraftKings calls
101.3% GAIN on Airbnb calls
203.0% GAIN on Shopify calls
102.0% GAIN on Cboe Global Markets calls
100.9% GAIN on Boeing calls
102.1% GAIN on Microsoft puts
102.3% GAIN on First Solar calls
101.5% GAIN on PulteGroup calls
101.0% GAIN on Apple calls
209.4% GAIN on NXP Semiconductors calls
100.8% GAIN on Uber Technologies calls
100.4% GAIN on Academy Sports and Outdoors puts
102.2% GAIN on Trade Desk calls
100.8% GAIN on DoorDash calls
100.0% GAIN on Camping World Holdings puts
100.0% GAIN on Cboe Global Markets calls
100.2% GAIN on C3.ai calls
238.5% GAIN on Oracle calls

 
 
 


 
 

Rainmaker Ads CGI