We last commented on Lam Research (LRCX) at the beginning of November. As we wrote at the time, "Lam Research (LRCX) has pulled back to the top end of a support zone over the past month. Prices may not see much more softness, though, as the longer-term trends remain strong."
LRCX has climbed about $15 since early November, so it is a good time to revisit the charts.
In this one-year daily bar chart of LRCX, above, we can see how prices rallied from early November. First there was a sharp rally and quick retracement, followed by slower advance from under $100 to over $110. Prices have stayed above the rising 50-day moving average line and survived a test of that curving trend line in early December.
The daily On-Balance-Volume (OBV) line has been steady to upward sloping since early November, which shows that buyers have been aggressive and accumulating shares. The 12-day momentum study in the lower panel shows that momentum has been slowing since mid-December. A slowing momentum picture is a "heads up" to watch the price action closer, but not a sell signal by itself.
In this updated three-year weekly chart of LRCX, above, we can see that prices are above the rising 40-week moving average line. The weekly OBV line is pointed up and the Moving Average Convergence Divergence (MACD) oscillator is also very bullish.
In this long-term Point and Figure chart of LRCX, above, we can see the enduring uptrend on this company. The next price objective derived from this charting technique is $120.