• 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
    • Doug Kass
    • Bruce Kamich
    • Jim Cramer
    • 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
    • Trifecta Stocks
  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

Emotions Run High as Indexes Slip

James "Rev Shark" DePorre
Jan 27, 2021 4:44 PM EST

I've raised a bit of cash, but it's still unclear what will emerge from here.

'Mortal Kombat' on the Market

Peter Tchir
Jan 27, 2021 3:54 PM EST

Let's pick apart the wild action in individual stocks -- especially GameStop -- and see what to expect going forward.

Butterflies Are Free: This GameStop Options Play Is Hardly Ever Seen

Timothy Collins
Jan 27, 2021 3:01 PM EST

I'll take a 66% risk-free rate of return in six months anytime.

Walgreens Boots Alliance Rallies Ahead of Earnings

Bruce Kamich
Jan 27, 2021 2:45 PM EST

Has WBA rallied too much?

Apple Earnings Land After Close -- Here's What the Charts Say

Bruce Kamich
Jan 27, 2021 2:09 PM EST

This is what I see going into the release of AAPL's quarterly report.

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

  • 11:48 AM EST STEPHEN GUILFOYLE

    Cashing in Some More Chips at Stocks Under $10

    We're trimming a position for a big gain today.
  • 08:34 AM EST GARY BERMAN

    Wednesday Morning Fibocall for 1/27/2021

    The "correction" can be coming sooner than we thou...
  • 09:35 AM EST CHRIS VERSACE

    Another Big Winner for Stocks Under $10

    We're ringing the register Tuesday morning.
  • See More

COLUMNIST TWEETS

  • A Twitter List by realmoney
About Privacy Terms of Use

© 1996-2021 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