Chips have been one of the stronger parts of the market lately as the economy rebounds from coronavirus and applications like cloud computing and videogaming flourish.
Lam Research is a provider of chip-making equipment. It rallied on a strong earnings report in late July, but then stalled and has now pulled back.
LRCX has stabilized in the last week or so. It had a large outside day on August 24 followed by an inside candle yesterday. Today’s another tight range, a potential sign of the short-term bearishness exhausting itself.
The consolidation has happened immediately above its 50-day simple moving average (SMA). It tested under that key line shortly before noon today, triggering an alert on the TradeStation platform.
LRCX’s current levels are also interesting because its pre-Covid peak on February 13 was $344.32. The stock broke above that level in July. It also successfully retested below it on July 24 (dragged down by Intel’s disappointing quarter).
This time around, LRCX made a higher low, while staying $3 above the early 2020 high.
Chips aren’t really in focus right now – especially given the big moves in
CRM
and Facebook, plus the looming splits in Apple and Tesla. So, LRCX may still need a little time. However, the longer-term trend still appears intact.
Lam Research is a provider of chip-making equipment. It rallied on a strong earnings report in late July, but then stalled and has now pulled back.
LRCX has stabilized in the last week or so. It had a large outside day on August 24 followed by an inside candle yesterday. Today’s another tight range, a potential sign of the short-term bearishness exhausting itself.
The consolidation has happened immediately above its 50-day simple moving average (SMA). It tested under that key line shortly before noon today, triggering an alert on the TradeStation platform.
LRCX’s current levels are also interesting because its pre-Covid peak on February 13 was $344.32. The stock broke above that level in July. It also successfully retested below it on July 24 (dragged down by Intel’s disappointing quarter).
This time around, LRCX made a higher low, while staying $3 above the early 2020 high.
Chips aren’t really in focus right now – especially given the big moves in
CRM
and Facebook, plus the looming splits in Apple and Tesla. So, LRCX may still need a little time. However, the longer-term trend still appears intact.