LRCX dominated by bears dragging the market lower throughout the day
Lam Research Corporation (LRCX) Technical Analysis Report for Jun 11, 2019 | by Techniquant Editorial Team
LRCX ended Tuesday at 189.92 losing $1.25 (-0.65%) on low volume, underperforming the Nasdaq 100 (0.16%). The bears were in full control today, moving the market lower throughout the whole session. Closing within the prior day's range, prices failed to decisively move beyond the previous day's trading range.
Daily Candlestick Chart (LRCX as at Jun 11, 2019):
Tuesday's trading range has been $5.89 (3.02%), that's slightly above the last trading month's daily average range of $5.26. Weekly volatility is also higher, being slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for LRCX.
One bearish candlestick pattern matches today's price action, the Black Candle. The last time a Black Candle showed up on May 28th, LRCX lost -0.74% on the following trading day.
Prices are trading close to the key technical support level at 186.59 (S1). Prices are trading close to the key technical resistance level at 193.03 (R1).
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Among the four market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Down Close Near Low of Period" stand out. Although it is usually interpreted as bearish, it has actually shown to be bullish for Lam Research. Out of 475 times, LRCX closed higher 54.53% 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 57.26% with an average market move of 1.40%.