LRCX climbs to highest close since February 20th
Lam Research Corporation (LRCX) Technical Analysis Report for Jun 30, 2020 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, LRCX ended the month 18.19% higher at 323.46 after surging $15.00 (4.86%) today on high volume, strongly outperforming the Nasdaq 100 (1.96%). This is the biggest single-day gain in over three weeks. Today's close at 323.46 marks the highest recorded closing price since February 20th. The bulls were in full control today, moving the market higher throughout the whole session. Ending with a strong close near the high of the day sets a bullish note for the next session.
Daily Candlestick Chart (LRCX as at Jun 30, 2020):
Tuesday's trading range has been $16.87 (5.42%), that's far above the last trading month's daily average range of $11.35. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for LRCX.
Two candlestick patterns are matching today's price action, the White Candle which is known as bullish pattern and one bearish pattern, the Bearish Hikkake Pattern.
After trading down to 308.93 earlier during the day, the stock bounced off the key technical support level at 310.00 (S1). The failure to close below the support could increase that levels importance as support going forward. When prices bounced off a significant support level the last time on June 25th, LRCX actually lost -3.22% on the following trading day.
Although still in a long-term downtrend, the short and medium-term trends both turned bullish already.
With prices trading close to this year's high at 344.32, upside momentum might accelerate should Lam Research be able to break out to new highs for the year.
Among the nine market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Decisive Up Move" stand out. Its common bullish interpretation has been confirmed for Lam Research. Out of 328 times, LRCX closed higher 53.35% 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 60.37% with an average market move of 1.09%.