• Subscribe
  • Log In
  • Home
  • Daily Diary
  • Asset Class
    • U.S. Equity
    • Fixed Income
    • Global Equity
    • Commodities
    • Currencies
  • Sector
    • Basic Materials
    • Consumer Discretionary
    • Consumer Staples
    • Energy
    • Financial Services
    • Healthcare
    • Industrials
    • Real Estate
    • Technology
    • Telecom Services
    • Transportation
    • Utilities
  • Latest
    • Articles
    • Video
    • Columnist Conversations
    • Best Ideas
    • Stock of the Day
  • Street Notes
  • Authors
    • Bruce Kamich
    • Doug Kass
    • Jim "Rev Shark" DePorre
    • Helene Meisler
    • Jonathan Heller
    • - See All -
  • Options
  • RMPIA
  • Switch Product
    • Action Alerts PLUS
    • Quant Ratings
    • Real Money
    • Real Money Pro
    • Retirement
    • Stocks Under $10
    • TheStreet
    • Top Stocks
    • TheStreet Smarts
  1. Home
  2. / Investing

Lam Research Could Trade Sideways Before Its Next Move Higher

The longer-term view remains positive.
By BRUCE KAMICH
May 07, 2020 | 02:25 PM EDT
Stocks quotes in this article: LRCX

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. 
Get an email alert each time I write an article for Real Money. Click the "+Follow" next to my byline to this article.

Employees of TheStreet are prohibited from trading individual securities.

TAGS: Investing | Stocks | Technical Analysis | Trading | Semiconductors & Semiconductor Equipment | Technology | Mad Money

More from Investing

On Surface Market Appeared Quiet, but Underneath Fireworks Sparked

James "Rev Shark" DePorre
Aug 16, 2022 4:37 PM EDT

Short-squeezes, stock rotations and parabolic S&P moves rocked the day.

You Bet Your BP I'd Be a Buyer

Mark Sebastian
Aug 16, 2022 2:32 PM EDT

With oil down over the last two days, BP's stock has held up.

Doug Kass: We May Now Be Approaching Another Important Top in the Market

Doug Kass
Aug 16, 2022 1:30 PM EDT

To justify buying at today's prices means that one expects a new Bull Market leg - something I remain dubious of.

Cisco, Long a Steady Tech Stock, Is Under the Microscope Ahead of Earnings

Brad Ginesin
Aug 16, 2022 12:45 PM EDT

Some top analysts are flashing a yellow light on the network equipment maker ahead of its quarterly report and amid tightening competition. But is caution really warranted for long-term investors?

2 Big-Name, Single-Stock ETFs With a Foreign Twist Could Be on the Horizon

Mark Abssy
Aug 16, 2022 12:00 PM EDT

The potential offerings from Roundhill aren't geared solely to the retail investor but also could interest smaller institutions and other ETF issuers.

Real Money's message boards are strictly for the open exchange of investment ideas among registered users. Any discussions or subjects off that topic or that do not promote this goal will be removed at the discretion of the site's moderators. Abusive, insensitive or threatening comments will not be tolerated and will be deleted. Thank you for your cooperation. If you have questions, please contact us here.

Email

CANCEL
SUBMIT

Email sent

Thank you, your email to has been sent successfully.

DONE

Oops!

We're sorry. There was a problem trying to send your email to .
Please contact customer support to let us know.

DONE

Please Join or Log In to Email Our Authors.

Email Real Money's Wall Street Pros for further analysis and insight

Already a Subscriber? Login

Columnist Conversation

  • 02:23 PM EDT STEPHEN GUILFOYLE

    We're Cleaning Out This Retailer From the Bullpen

    Check out the latest moves in TheStreet's Stocks U...
  • 10:24 AM EDT JAMES "REV SHARK" DEPORRE

    This Weekend on Real Money

    To Improve Your Trading and Investing, Spend More ...
  • 08:44 AM EDT PETER TCHIR

    CPI Beats Expectations, But Maybe Not the 'Whisper'?

    Slightly better-than-expected inflation across the...
  • See More

COLUMNIST TWEETS

  • A Twitter List by realmoney
About Privacy Terms of Use

© 1996-2022 TheStreet, Inc., 225 Liberty Street, 27th Floor, New York, NY 10281

Need Help? Contact Customer Service

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

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.

FactSet 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.

Compare Brokers

Please Join or Log In to manage and receive alerts.

Follow Real Money's Wall Street Pros to receive real-time investing alerts

Already a Subscriber? Login