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.
Looking at this 12-month daily chart of LRCX, below, we can see the uptrend from the February low. LRCX rallies and corrects and then rallies again followed by another correction and then further gains.
The volume pattern is hard to discern but the rising On-Balance-Volume (OBV) line in the middle panel shows a steady rise. The OBV line moves higher if the number of shares traded is heavier on days when LRCX closes higher. Stronger volume on an up-day is a sign that buyers are paying up. Notice how prices pull back about $6 in October but the OBV line remains steady. A flat or steady OBV line tells us that investors are holding their positions and are not anxious to get out.
LRCX is testing the 50-day average line but it hasn't been broken. The MACD oscillator is pointed down but still above the zero line.
This weekly chart of LRCX, below, remains strong. Prices are above the rising 40-week moving average line.
The weekly OBV line has been rising since 2014 and while the MACD oscillator could cross, the oscillator is well above the zero line.