LAM RESEARCH CORP is setting up nicely for a breakout.

A possible breakout setup was detected on LAM RESEARCH CORP (NASDAQ:LRCX) by our stockscreener. A breakout pattern is formed when a stock consolidates after a strong rise up. We note that this pattern is detected purely based on technical analysis and whether the breakout actually materializes remains to be seen. It could be interesting to keep an eye on NASDAQ:LRCX.

Technical analysis of NASDAQ:LRCX

ChartMill assigns a proprietary Technical Rating to each stock. The score is computed daily by evaluating various technical indicators and properties. The score ranges from 0 to 10.

Overall LRCX gets a technical rating of 7 out of 10. This is due to a decent performance in both the short and medium term time frames. Compared to the overall market, LRCX is only an average performer.

• The long and short term trends are both positive. This is looking good!
• LRCX is one of the better performing stocks in the Semiconductors & Semiconductor Equipment industry, it outperforms 74% of 104 stocks in the same industry.
• LRCX is currently trading in the upper part of its 52 week range. The S&P500 Index is also trading in the upper part of its 52 week range, so LRCX is performing more or less in line with the market.
• In the last month LRCX has a been trading in the 480.45 - 536.50 range, which is quite wide. It is currently trading near the high of this range.
• Looking at the yearly performance, LRCX did better than 82% of all other stocks. However, this overall performance is mostly based on the strong move around 4 months ago.

Looking at the Setup

Besides the Technical Rating, ChartMill also assign a Setup Rating to every stock. This setup score also ranges from 0 to 10 and determines to which extend the stock is consolidating. This is achieved by evaluating multiple short term technical indicators. NASDAQ:LRCX currently has a 9 as setup rating:

LRCX has an excellent technical rating and also presents a decent setup pattern. We see reduced volatility while prices have been consolidating in the most recent period. There is a resistance zone just above the current price starting at 530.13. Right above this resistance zone may be a good entry point. There is a support zone below the current price at 520.29, a Stop Loss order could be placed below this zone. Another positive sign is the recent Pocket Pivot signal.

How to trade NASDAQ:LRCX?

A breakout could materialize when the stock breaks out to new highs above the current consolidation zone. One could wait for this to happen and buy when this happens. A stop loss could be placed below the consolidation zone.

Of course, there are many ways to trade or not trade NASDAQ:LRCX and this article should in no way be interpreted as trading advice. The article is purely based on an automated technical analysis and just points out the technical observations. Always make your own analysis and trade at your own responsibility.

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