LAM RESEARCH CORP is showing promising signs of setting up for a breakout.

Our stock screener has identified LAM RESEARCH CORP (NASDAQ:LRCX) as a potential breakout candidate. This technical breakout setup pattern occurs when the stock consolidates after a strong uptrend. While the actual breakout is uncertain, it may be worth keeping an eye on NASDAQ:LRCX.

Technical Analysis Observations

ChartMill assigns a Technical Rating to every stock. This score ranges from 0 to 10 and is updated daily. The score is determined by evaluating multiple technical indicators and properties.

Taking everything into account, LRCX scores 8 out of 10 in our technical rating. Both in the recent history as in the last year, LRCX has proven to be a steady performer, scoring decent points in every aspect analyzed.

• The long and short term trends are both positive. This is looking good!
• Looking at the yearly performance, LRCX did better than 96% of all other stocks. On top of that, LRCX also shows a nice and consistent pattern of rising prices.
• LRCX is one of the better performing stocks in the Semiconductors & Semiconductor Equipment industry, it outperforms 90% of 106 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 602.63 - 665.00 range, which is quite wide. It is currently trading near the high of this range.

Our latest full technical report of LRCX contains the most current technical analsysis.

Looking at the Setup

ChartMill takes into account not only the Technical Rating but also assigns a Setup Rating to each stock. This rating, on a scale of 0 to 10, reflects the degree of consolidation observed based on short-term technical indicators. Currently, NASDAQ:LRCX exhibits a 9 setup rating, indicating its consolidation status in recent days and weeks.

LRCX has an excellent technical rating and also presents a decent setup pattern. Prices have been consolidating lately. There is very little resistance above the current price. There is a support zone below the current price at 643.94, a Stop Loss order could be placed below this zone. Another positive sign is the recent Pocket Pivot signal.

How to trade NASDAQ:LRCX?

One way to play this would be to wait for the actual breakout to happen and buy when the stock breaks out above the current consolidation zone. A possible place for a stop loss would be below this zone.

Disclaimer: This article is not intended to provide trading advice. It is crucial to conduct your own analysis and consider your own observations and trading style when making investment decisions. The article solely presents technical observations and should not be relied upon as a sole basis for trading.

Our Breakout screener lists more breakout setups and is updated daily.

Keep in mind

This article should in no way be interpreted as advice in any way. The article is based on the observed metrics at the time of writing, but you should always make your own analysis and trade or invest at your own responsibility.