Lam Research Is on the Run Higher

 | May 19, 2017 | 3:13 PM EDT
  • Comment
  • Print Print
  • Print
Stock quotes in this article:


Lam Research (LRCX) has nearly doubled in the past year, but with no distribution or topping pattern in sight we could see prices climb even higher in the weeks ahead.

We wrote about LRCX in January and prices have quickly overshot our price target: "In this long-term Point and Figure chart of LRCX... we can see the enduring uptrend on this company. The next price objective derived from this charting technique is $120."

The rally is not tiring so an update seems appropriate today. New price targets and risk levels.

In this daily bar chart of LRCX, above, we can see how the rally turned vertical last month with a gap and stronger volume. The slope of both the 50-day and the 200-day moving averages remain positive. The daily On-Balance-Volume (OBV) line has climbed with the price action the past 12 months, telling us that the bullish traders support the advance with heavier volume on up days.

The Moving Average Convergence Divergence (MACD) oscillator has been above the zero all year. Recently, the MACD oscillator crossed to a take profits sell signal but it could soon turn back up again.

In this weekly chart of LRCX, above, the price action looks like a parabolic rally. Prices could have a "blow off" to much higher levels or we could see a high level consolidation. The 40-week moving average line is bullish as is the weekly OBV line. The weekly MACD oscillator is still rising above the zero line.

In this Point and Figure chart of LRCX, above, we can see the rally -- awesome! The next price objective is $163+. We could also suggest the $240 level is possible if prices make a triple from the consolidation pattern on the weekly bar chart.

Bottom line: Consider raising you sell stop orders to a close below $140. Targets start at $163 and go up from there.



News Breaks

Powered by


Except as otherwise indicated, quotes are delayed. Quotes delayed at least 20 minutes for all exchanges. Market Data provided by Interactive Data. Company fundamental data provided by Morningstar. Earnings and ratings provided by Zacks. Mutual fund data provided by Valueline. ETF data provided by Lipper. Powered and implemented by Interactive Data Managed Solutions.

TheStreet Ratings updates stock ratings daily. However, if no rating change occurs, the data on this page does not update. The data does update after 90 days if no rating change occurs within that time period.

IDC calculates the Market Cap for the basic symbol to include common shares only. Year-to-date mutual fund returns are calculated on a monthly basis by Value Line and posted mid-month.