This chip stock is poised to reverse a 'long-term downtrend,' says market watcher

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This chip name is poised to reverse a 'long-term downtrend,' says market watcher $MU $AMD (via TradingNation)

In the last year, AMD has been the clear winner between the two names. It has almost doubled, while Micron has shed 22%. But Piper Jaffray's Craig Johnson and Joule Financial's Quint Tatro agree it's Micron's time to shine."Trading Nation,"

"Looks like the stock has made a double bottom. It's poised to break out and reverse that longer-term downtrend," he said. Johnson is closely watching the $45 line, which has provided resistance in the past, and he believes that if the stock breaks above it, investors will come aboard. The stock was trading around that level in Friday's premarket."Micron suffered a double whammy. Not only did it go down with the DRAM pricing glut, but ultimately 50% of Micron's revenue is from China, so it's extremely susceptible to headline risk," he said.

The semiconductor stocks have been caught squarely in the trade war crosshairs and is especially sensitive to U.S.-China relations. The, which tracks some of the biggest names in the space, has whipsawed back and forth based on any whiff of progress in negotiations — or lack thereof.

 

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