LRCX closes within previous day's range after lackluster session
Lam Research Corporation (LRCX) Technical Analysis Report for May 22, 2020 | by Techniquant Editorial Team
LRCX finished the week 3.69% higher at 261.14 after edging higher $0.44 (0.17%) today, slightly underperforming the Nasdaq 100 (0.38%) ahead of tomorrow's Memorial Day market holiday. Closing within the previous day's range, prices failed to decisively move beyond the prior day's trading range in a lackluster session.
Daily Candlestick Chart (LRCX as at May 22, 2020):
Friday's trading range has been $6.20 (2.36%), that's below the last trading month's daily average range of $12.13. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for LRCX.
One bearish candlestick pattern matches today's price action, the Bearish Spinning Top. The last time a Bearish Spinning Top showed up on Monday, LRCX actually gained 1.63% on the following trading day.
Prices are trading close to the key technical support level at 254.49 (S1).
Lam Research shows weakness in the short-term (in accordance with its long-term downtrend) with only the medium-term trend still being bullish.
Buying might accelerate should prices move above the nearby swing high at 273.42 where further buy stops could get triggered. Further buying might move prices higher should the market test April's close-by high at 281.95.
Among the two market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bearish Spinning Top" stand out. Although it is usually interpreted as bearish, it has actually shown to be bullish for Lam Research. Out of 208 times, LRCX closed higher 55.77% 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 57.69% with an average market move of 1.59%.