LRCX pushes through Tuesday's high
Lam Research Corporation (LRCX) Technical Analysis Report for Feb 13, 2019 | by Techniquant Editorial Team
Moving higher for the 3rd day in a row, LRCX ended Wednesday at 181.01 gaining $1.76 (0.98%), outperforming the Nasdaq 100 (0.02%). Today's close at 181.01 marks the highest recorded closing price since August 9, 2018. Closing above Tuesday's high at 180.14, the share confirmed its breakout through the prior session high after trading up to $2.82 above it intraday.
Daily Candlestick Chart (LRCX as at Feb 13, 2019):
Wednesday's trading range has been $3.68 (2.04%), that's below the last trading month's daily average range of $5.23. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently higher than usual for LRCX.
Buyers managed to take out the key technical resistance level at 180.53 (now S1), which is likely to act as support going forward. The last time this happened on January 24th, LRCX gained 2.66% on the following trading day.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Among the three market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Price broke through Technical Resistance R1" stand out. Its common bullish interpretation has been confirmed for Lam Research. Out of 256 times, LRCX closed higher 52.73% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the long side has been after 10 trading days, showing a win rate of 64.06% with an average market move of 1.21%.