Lam Research (LRCX) is showing upside potential for early 2020. Let's check out the charts and indicators to come up with some price targets and risk levels.
In this daily bar chart of LRCX, which was mentioned in Jim Cramer's column Thursday, below, we can see that prices more than doubled in the past year. Prices have stayed above the rising 50-day moving average line since August and dips or corrections toward the 50-day line have been buying opportunities. The slower-to-react 200-day moving average line is positive and was last tested back in March. The daily On-Balance-Volume (OBV) line shows a rise for the past year, which is positive and tells us that buyers of LRCX have been more aggressive.
Recently LRCX has made a new high, but the OBV line has not followed. This divergence should disappear soon and the OBV line should get in sync with the bullish price action. The Moving Average Convergence Divergence (MACD) oscillator is above the zero-line in bullish territory, but the two averages have narrowed and could cross to a take profits signal.