This week we will look at the struggling semiconductor space for "discounted" opportunities. The semiconductor space has suffered a strong and consistent selloff since last summer as investors worked to price in the effects of a slowdown in demand met with a period of oversupply. Add to that the unknowns of the tariffs and you have a recipe for some weakness in the mid term.

This week could have helped solidify a bottom in the space as many names reported earnings that were better than expected. Lam Research (LRCX  ) was one of those names that reported earnings Wednesday that came in better than expected. Xilinx (XLNX  ) was another name that also reported earnings above analyst expectations along with Texas Instruments (TXN  ). Despite the weaker guidance going forward that TXN mentioned it still shed light on a sector that may be oversold.

Micron Technologies (MU  ) is another name in the space that benefited from the recent string of positive earnings reports this week with nearly a 7% gain on Thursday alone. The stock has also participated in the general weakness of the sector but could also be showing signs of a reversal.

Since June the stock has been in a steady and strong downtrend, trading below it's 50 and 200 day moving averages. Technical traders will also note the steady downtrend with very consistent lower lows and lower highs. On Thursday this week the stock closed above that downtrend as well as it's 50 day moving average for the first time since last summer. With higher volume coming into the name on Thursdays rally we thought his could be a sign of more upside to come.

This weeks trade of the week is a simple long trade on Micron Technologies with two profit targets in mind. The first is the $42.50 area and the second is the 200 day moving average that currently sits around $45. Though this will not likely be a quick trade, with a little further support from the sector could easily see those profit targets hit.