While the broader market continues to grapple with weak seasonal winds, Micron Technology, Inc. (NASDAQ:MU) has quietly been making a comeback. Since bottoming on Aug. 11, MU stock has climbed 12.8%, healing much of last month’s damage in the process.
![Buy Micron Technology, Inc. (MU) Stock Before It Breaks Out](https://investorplace.com/wp-content/plugins/lazy-load/images/1x1.trans.gif)
With key resistance looming close, the time for a breakout trade is at hand.
Before the market’s recent misstep, semiconductor stocks were the belles of the ball. Momentum traders flocked to Micron and its peers, Nvidia Corporation (NASDAQ:NVDA) and Advanced Micro Devices, Inc. (NASDAQ:AMD). The trio boast volatility in spades and stellar long-term uptrends.
And that’s why MU’s budding rebound is noteworthy. If it truly is reclaiming its mojo, then profits are in store for bulls once more.
Micron Charts
The deeper retracement in late-July created a slight lower pivot low on Micron’s weekly chart. This shows the robust uptrend in place since early-2016 is finally weakening a bit. Given the magnitude of its ascent, I suppose the trend was bound to run out of gas at some point.
Notice how we had a handful of distribution candles creep in to accompanying the rollover.
![MU stock chart weekly view](https://investorplace.com/wp-content/plugins/lazy-load/images/1x1.trans.gif)
Click to Enlarge
With last week’s rally, MU stock was able to get back above the 20-week moving average, so consider that victory No. 1 for the revival efforts.
As we turn to the daily time frame, you can see the true reason for today’s pitch. Micron is building a high-quality base right at its 50-day moving average. The cleanliness of the consolidation makes it an easy pattern to trade. It’s worth noting the high of the base ($30.86) corresponds to the July 25 unfilled gap which is what initially kicked off the correction.
![MU stock chart daily view](https://investorplace.com/wp-content/plugins/lazy-load/images/1x1.trans.gif)
Click to Enlarge
On a break above $30.86, consider bullish trades a go!
The Trade on MU Stock
Implied volatility is on the lower end for Micron options making long premium plays the way to go. Buy the Oct $30 calls for around $2.35.
To minimize the loss, consider exiting if the stock breaks below the $29 support level. A breach of that would invalidate the breakout.
As of this writing, Tyler Craig did not hold a position in any of the aforementioned securities. Want to learn how to master the art of option selling for high-probability cash flow? Check out Tyler’s recently released video series through Tackle Trading on how to systematically sell iron condors for monthly income.