Lam Research Corp. ( LRCX) suffered a big decline in 2018 but this year has seen prices recoup nearly all of those previous losses. Can prices push still higher or should we start to consider a large double-top formation? Good questions so let's check out the charts of this Action Alerts PLUS holding.
In the daily bar chart of LRCX, below, we can see the rally this year. Prices are above the rising 50-day moving average line and the bullish 200-day line. In early February we can see the 50-day line cross the 200-day line for a bullish golden cross.
The trading volume looks pretty even the past seven months but the On-Balance-Volume (OBV) line show a strong rise telling us that buyers of LRCX have been more aggressive. The Moving Average Convergence Divergence (MACD) oscillator just turned to the upside from above the zero line for a fresh go long signal.
In the weekly bar chart of LRCX, below, we can see that prices have come within in a fraction of the early 2018 zenith. LRCX is above the rising 40-week moving average line but the OBV line has not matched the price action.
The weekly MACD oscillator gave a buy signal on this longer time frame.
In this Point and Figure chart of LRCX, below, we can see a projected upside price target of $244 -- a new high for the stock.
Bottom-line strategy: It looks like there is more upside on LRCX. A decline below $210 could mark a reversal.
