We wrote about Lam Research (LRCX) recently, and while not a major decline, LRCX has recently lost $20 before finding buyers again. Prices are up today with the gains pushing the share price back above the now flat 50-day moving average line.
The daily On-Balance-Volume (OBV) line moved lower in June and slightly lower at the end of July. This movement in the OBV line after months of a rising trend tells me that prices are high enough to attract more aggressive selling. The trend-following Moving Average Convergence Divergence (MACD) oscillator has turned down to a fresh take-profits signal. Today's price strength will probably delay or reverse the down move in the MACD oscillator. See the chart below.
In this weekly chart of LRCX, above, the price weakness recently doesn't look like much. The weekly OBV line is still positive and the MACD oscillator is well above the zero line as it makes a take-profits sell signal.
Bottom line: With prices in the middle of the $140-$170 trading range, we are not out of the woods yet. Obviously a close above $170 would be bullish and a close below $140 would be bearish.