Semiconductor equipment producer Lam Research (LRCX) has consistently been in the Green Favored Zone of the SIA S&P 500 Index Report since February, returning 32.3% since we last mentioned it in the February 2nd edition of the Daily Stock Report. Yesterday, LRCX rallied 9.25% on the back of a positive earnings report and jumped 10 positions to 19th place. Back in May, Lam Research (LRCX) broke out of a big bullish Ascending Triangle base which confirmed that a new uptrend was getting underway. Since then, the shares have remained under accumulation and yesterday, they broke out of another Ascending Triangle confirming that their current uptrend remains intact. Initial upside resistance for LRCX appears at the early 2022 peak near $710.00, followed by the $800.00 round number which is based on a measured move from the first, larger triangle. Initial support appears near $640.00 based on a retest of the recent breakout point.
Last October, a major selloff in Lam Research (LRCX) shares bottomed out when it was contained by a long-term 45-degree support line. Since then, LRCX has been under renewed accumulation. After starting 2023 off with a rally, the shares consolidated between February and May. Since launching up out of a symmetrical triangle, LRCX has been consistently climbing recently completing a bullish Double Top breakout and a Bullish Catapult. Currently LRCX is approaching resistance at its 2022 peak near $721.65. Next potential resistance after that appears near $796.75 based on a vertical count and $879.70 based on a horizontal count. A 3-box reversal suggests initial support may appear near $640.80. With a bullish SMAX score of 8, LRCX is exhibiting strength against the asset classes.
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