Please note: Steve Miller discussed LRCX in our Stock Sectors segment – “20 Overbought Stocks Ready to Correct” on 1/23/2020. Become a Level 2, 3 or 4 member to get access to our extensive library of over 500+ videos.
Lam Research (LRCX) reported earnings on 1/29/2020 after-hours. The company reported adjusted EPS of $4.01, which beat analyst expectations of $3.86. Revenue rose to $2.58B, which also beat expectations of $2.51B. Let’s see what the charts tell us.
Lam Research (LRCX) Weekly and Daily Chart Grid – annotations by askSlim.com
At askSlim.com we use technical analysis to evaluate price charts of stocks, futures, and ETF’s. We use a combination of cycle, trend and momentum chart studies, on multiple timeframes, to present a “sum of the evidence” directional outlook in time and price.
askSlim.com Technical Briefing: The weekly analysis suggests that LRCX is in a positive longer-term pattern but is due to have a short-term correction. Weekly momentum is positive. The daily analysis suggests that the stock is in a positive pattern but showing early signs of failure. For the stock to confirm that it has formed a short-term high, we would expect to see daily momentum turn negative. As of 1/30/2020, daily momentum remains positive.
On the upside, there is an intermediate-term Fibonacci projection/target zone from 312.92 – 326.47. On the downside, there is an intermediate-term Fibonacci support zone from 294.74– 279.76. Our analysis suggests that for the bears to regain control of the intermediate-term, we would likely need to see a weekly close below 269.09.
askSlim.com Sum of the Evidence: LRCX has a positive longer-term pattern but is due for a short-term correction. The stock is showing signs of stalling on the daily timeframe. Given the longer-term positive pattern, we would expect any downside to be limited to the intermediate-term Fibonacci supports beginning at 294.74.
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