KLA Corp - (KLAC) - May 26, 2023
KLA Corp. (KLAC), a producer of process control equipment for the semiconductor and nanotechnology industries, has returned to the Green Favored Zone of the SIA NASDAQ 100 Index Report from a two-month dip down into the yellow zone. Yesterday it finished in 19th place, up 7 spots on the day and up 30 positions in the last month.
A major breakout is underway in KLA Corp (KLAC) shares. Within the last week, the shares have peeked above $425.00, dropped back briefly, gapped down on Wednesday, and then gapped back up yesterday on increased volume, trapping bears off side. KLAC closed at its highest level since January of 2022, signaling the end of a four-month period of consolidation and the start of a new advance.
Initial upside resistance may appear at the January 2022 peak near $450.00, then the $500.00 to $525.00 area where measured moves and a big round number converge. Initial support moves up to the $425.00 breakout point from $400.00.
After completing an initial recovery rally in November-December, KLA Corp. (KLAC) shares spent four months trending sideways and consolidating their gains. Last month, the shares staged a bullish Bear Trap reversal where they broke down by one row then turned upward and haven’t looked back since. In recent weeks, the shares have completed bullish Double Top and Spread Double Top breakouts.
Currently, KLAC is bumping up against its January 2022 peak. A rally above $439.40 to a new high would confirm the start of a new advance with next potential resistance in the $494.60 to $514.85 area where vertical and horizontal counts cluster around the $500.00 round number. Initial support appears in the $398.00 to $400.00 area where a round number and a 3-box reversal converge.
With a bullish SMAX score of 9, KLAC is exhibiting strength against the asset classes.
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