Micron Technology is coming off its best day in 18 months. It's just getting started, according to two traders.
Two bullish notes kicked off the rally on Friday. Both Evercore and Citi highlighted the stock as having upside potential thanks to an expected renewal in demand for memory chips."It's a cyclical stock, supply and demand affected, and I think these two analyst reports [Friday] kind of woke people up that it looks like pricing is going to come back to the DRAM and the NAND market in the first quarter of 2022.
Danielle Shay, director of options at Simpler Trading, agrees that the move in Micron is just beginning. "The underperformance has given us a really nice consolidation on Micron … and I'm looking at that consolidation breaking out. It's up above the [200-day moving average] on high volume. I'm targeting $100 and then $120," she said during the same interview."We additionally have a run into earnings in Micron which is typically pretty strong.