During Wednesday night's 'Lightning Round' segment on Mad Money, one caller asked Jim Cramer about Lam Research (LRCX) : "This is the finest semiconductor equipment company in the world but trade tensions are high," Cramer's responsed. Let' check the charts of this chipmaker.
In this daily bar chart of LRCX, below, we can see the damage done to the chart in February and March but prices have been making a comeback. Trading volume has been increasing all year and while prices are currently below the moving averages, we favor it won't take much of a rally to get LRCX back above these indicators.
The daily On-Balance-Volume (OBV) line has been in a sideways to lower trend from the middle of February and it would be a positive sign for the OBV to strengthen.
The trend-following Moving Average Convergence Divergence (MACD) was briefly above the zero line but it is retesting it now from above.
In this weekly bar chart of LRCX, below, we see a mixed picture. Prices have been trading around the rising 40-week moving average line.
The weekly OBV line shows some weakness the past four months. The MACD oscillator is just below the zero line but seems unsure whether it wants to narrow.
In this weekly Point and Figure chart of LRCX, a potential upside price target in the $391 area is indicated.
Bottom line strategy: LRCX is likely to trade sideways for the near-term but the longer-term view remains positive.
