Over the last month, semiconductor equipment producer Lam Research (LRCX) has been moving back up the rankings in the SIA NASDAQ 100 Index Report, climbing up out of the red zone and returning to the Green Favored Zone for the first time since August. Yesterday the shares finished in 24th place up 15 spots on the day and up 36 positions in the last month.
After rallying to start the year, Lam Research (LRCX) shares had been stuck in a sideways consolidation range between $535 and $670. Last month, a downswing was contained by a successful retest of longer-term uptrend support. Since then, the shares have been under renewed accumulation, posting four straight full weeks of gains. This week is off to a good start too with the shares breaking out to a new all-time high and signaling the start of a new upleg.
Initial upside resistance may appear near the $750 round number. A measured move from the recent trading range suggests next potential resistance near $805. Initial support appears near the $600 round number.
Climbing up off of the March 2020 market bottom, Lam Research (LRCX) shares rallied for over a year through to April of 2021. For the last seven months, however, the shares had been in consolidation mode, stuck in a sideways range, while digesting their previous gains. This pause now appears to be over as the shares breaking out to a new all-time yesterday, a sign that the bulls have re-asserted themselves and that a new upleg has started. Yesterday’s the shares completed a bullish Spread Double Top pattern and confirmed a recent Spread Triple Top breakout.
Vertical and horizontal counts suggest next potential upside resistance tests on trend may appear near $738.25, $768.10, and $865.00. Initial support appears near $617.75 based on a common 3-box reversal.
With a bullish SMAX score of 8, LRCX is exhibiting strength across the asset classes.
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