Double-Top Breakout Could Take MU 20% Higher

Micron Technology reversed up and broke to a new closing high


Micron Technology (MU) — I recommended this stock on March 25, near $10 with a target of $14. On June 7, with the stock at $12.56, I increased my target to $16-plus, citing better prices for DRAM and NAND flash products, Micron’s core business.

I upped my target to $20 on June 27, following better-than-expected fiscal third-quarter earnings. And when the company beat fiscal fourth-quarter estimates, I hiked my price target again to $24 on Nov. 14.

For two years, MU has been one of our best performers and continues to surpass estimates. Since my last report on April 21, the stock broke from its 50-day moving average at $24 and ran to a new high at $26.62. It then fell to its 50-day moving average at $24, reversed up and broke to a new closing high at $26.74 on Monday.

This new double-top breakout renders a trading target of $32. But consensus estimates go as high as $50. The best policy is to buy MU and hold it. 

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