Semiconductor equipment producer Lam Research (LRCX) continues to steadily work its way up the rankings in the SIA NASDAQ 100 Index Report with a recent upswing carrying the shares back up into the Green Favored Zone for the first time since October. Yesterday LRCX finished in 26th position, up 13 places on the day and up 31 spots in the last month.
Lam Research (LRCX) shares have staged a dramatic turnaround over the last six months, capped off by a major breakout yesterday. Since July, a bullish Head and Shoulders base has been forming with shoulders near $400 in July and January, and the head near $300 at the October bottom. A recent Golden Cross of the 50-day average over the 200-day average signaled that a new uptrend was getting underway. This was confirmed by yesterday’s breakout over the $500 level on volume which also completed the base pattern.
Measured moves from the head and shoulders bottom suggest potential upside resistance near $600 and $700 on trend with the previous peak near $720. Initial support moves up to the $500 round number breakout point from $475.
The recovery in Lam Research (LRCX) shares which started back in October entered a new phase yesterday with the shares climbing back up to their highest level since April. The current rally, which started with a bullish Triple Top breakout last month has added bullish Spread Double Top and Spread Triple Top breakouts, regained the $500.00 level and extended into a bullish High Pole, all combining to indicate renewed investor interest.
Initial upside resistance may appear in the $572.50 to $595.65 area, just below the $600.00 round number, where a horizontal count and previous highs converge, followed by $657.65 a level that has acted as both support and resistance in the past. Initial support appears near $488.65 based on a 3-box reversal.
With its bullish SMAX score increasing to 7, LRCX is exhibiting strength against the asset classes.
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